• U.S. Treasury Secretary nominee Scott Bessent points to unconfirmed rumors about China exploring digital assets backed by assets other than the renminbi.
  • China's e-CNY, with over $2.3 trillion in cumulative transactions by late 2025, is set for major enhancements in 2026, including interest-bearing wallets and deeper integration into public payments.
  • The People's Bank of China (PBOC) emphasizes sovereign control over digital finance, prioritizing e-CNY adoption while cracking down on private stablecoins and decentralized finance.

Efforts to expand China's digital currency footprint have hit a new phase of speculation, as Scott Bessent, a nominee for U.S. Treasury Secretary, highlighted rumors of China developing digital assets backed by something other than the renminbi. According to people familiar with the matter, these rumors circulate amid China's rapid push for its e-CNY, which saw cumulative transactions exceed $2.3 trillion by late 2025 and is poised for significant upgrades starting in 2026.

No confirmed evidence supports the existence of non-RMB-backed digital assets, but the chatter underscores the high-stakes environment as China accelerates its central bank digital currency (CBDC) experiment. Instead, China is doubling down on e-CNY, with plans to introduce interest-bearing wallets in January 2026, offering demand deposit rates for verified users to boost adoption. This move, part of a broader strategy to integrate e-CNY into public payments like subsidies and taxes, aims to draw funds while maintaining tight regulatory control—anonymous wallets will be excluded from interest payments to prevent misuse.

"What institutional investors are really focused on is regulatory stability," a source close to the PBOC said, echoing sentiments from recent financial conferences. The central bank has been clear: e-CNY is the cornerstone of China's digital finance, with PBOC Governor Pan Gongsheng signaling that Web3 innovation must occur only through CBDC models, amid global concerns over private stablecoins' volatility. This stance was reinforced at IMF events in 2025, where Pan reiterated the risks of unregulated digital assets, leading to a late-2025 crackdown on stablecoins domestically.

Institutional setups are ramping up to support this vision. A new Beijing E-CNY Operations Center launched in October 2025, followed by Shanghai's cross-border hub in September 2025, designed to facilitate international trade settlement and bolster RMB internationalization. These efforts align with China's 15th Five-Year Plan goals for a digital economy, positioning e-CNY against dollar hegemony and competing with non-interest-bearing CBDC norms in the U.S. and EU. However, the interest-bearing design risks bank disintermediation, though a two-tier model with commercial intermediaries helps mitigate this.

On the ground, the societal impact is growing. Citizens benefit from incentives like tax rebates and insurance payments through e-CNY wallets, which are insured and earn interest, advancing digital health initiatives such as over 3,000 internet hospitals. Stakeholders, including banks protected by their distribution role and businesses gaining trade efficiency, are navigating this shift, with analysts noting that adoption incentives limit the appeal of private cryptocurrencies. Attempts to reach out to Bessent's office for further comment on the rumors were unsuccessful at press time.

Looking ahead, short-term developments in 2026 will focus on deeper banking and trade integration, driven by interest payments to spur adoption. Long-term, this could reshape global CBDC debates and enhance the RMB's role, with experts predicting rivalry with stablecoins and growth in tokenized real-world assets if interoperability advances. Relatedly, Hong Kong's 2026 framework for virtual asset licensing, requiring HK$10 million capital for custodians, is attracting institutional crypto investment post-PBOC's stablecoin volatility actions, highlighting regional contrasts in digital finance approaches.

Correction: An earlier version of this article misstated the timing of interest-bearing wallet implementation; it is set for January 2026, not late 2025.