China plans to expand access to its digital yuan by allowing 12 additional banks to handle the currency, according to sources familiar with the matter.

The move is part of Beijing’s effort to accelerate adoption of the e-CNY and deepen its use within the domestic economy.

The move will increase the number of authorised institutions from 10 and is expected to include lenders such as Shanghai Pudong Development Bank, China Everbright Bank and Bank of Ningbo.

Launched in 2019, uptake of the digital yuan has been gradual. Retail adoption has faced competition from established payment platforms such as Alibaba’s Alipay and Tencent Holdings’ WeChat Pay, which already offer widely used, low-cost electronic payment services.

Officials and analysts say the digital yuan may have greater potential in cross-border payments, where it could enable settlements outside dollar-based systems and infrastructure such as SWIFT.

The expansion also reflects a broader policy divergence, according to Reuters.

China has tightened restrictions on private cryptocurrencies and banned stablecoins.

Meanwhile, the US under Donald Trump has supported private digital assets and opposed a central bank digital currency.

Sources said the additional banks comprise a mix of joint-stock and city commercial lenders. They have not disclosed a timeline for formal approval.

Separately, Bank of Ningbo recently invited suppliers to help develop infrastructure to support the e-CNY.

China has also taken steps to promote broader use of the currency.

The central bank established an international operations centre in Shanghai. It also began offering interest on e-CNY holdings from January to improve its appeal.

By November last year, cumulative digital yuan transactions had reached 16.7 trillion yuan (US$2.4 trillion). In comparison, total payments processed across China in 2025 alone stood at 128 trillion yuan.

Analysts say the initiative extends beyond domestic payments. It supports China’s longer-term aim of expanding the renminbi’s role in global finance. It also helps build alternative settlement channels outside the US dollar system.

Featured image credit: Edited by Fintech News Hong Kong, based on image by user2707116 via Freepik