China Overhauls Digital Yuan Payment Network and Expands Cross-Border Payments

China has completely revamped the payment infrastructure for its digital yuan (e-CNY). The core of this overhaul is the integration of smart contracts and digital asset services into the central bank's payment system, expanding its application to corporate finance and cross-border payments. On the 22nd, during the '2026 Financial Forum' held in Beijing, the People's Bank of China unveiled the Digital Yuan System (DCEPS) and the Smart Contract Ecosystem Service Framework (e-CNY SMART Contract). The announcement highlighted the advancement of the digital yuan infrastructure service system, which aims to extend from retail payments to interbank fund transfers and corporate payments. The digital yuan will transition from a cash-based to a deposit-based system, with the digital yuan wallet balances of commercial bank customers classified as bank deposit liabilities. The new DCEPS will provide eight core services, including inter-institutional payment processing and liquidity integrated management. Enhanced smart contract functionalities will enable automatic execution of fund disbursements, and cross-border payment capabilities will also be included. The cumulative transaction count for the digital yuan has reached 4.3 billion, with a transaction volume of approximately 31 trillion yuan, and the number of operating institutions has expanded to 30.

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