China’s central bank has rolled out an action plan to strengthen the management, services and supporting infrastructure of the digital yuan, with a new framework set to take effect on Jan. 1, 2026, a senior official said.

Lu Lei, deputy governor of the People’s Bank of China (PBOC), said in an article published on Monday that the plan aims to improve the digital currency’s measurement framework, management system, operational mechanisms and overall ecosystem to better meet the needs of the real economy and the financial system.

The action plan will be implemented from Thursday, which falls on New Year’s Day, according to the central bank.

Lu said the initiative is guided by the recommendations of the Communist Party of China’s Central Committee for the 15th Five-Year Plan period, which call for accelerating China’s development as a financial power and for the steady development of the digital renminbi.

“The digital renminbi should be developed in a prudent and orderly manner,” Lu wrote, adding that the updated framework is intended to support more efficient issuance, circulation and usage of the currency, while strengthening its role within the domestic financial system.

The new system is also designed to align China’s digital currency development with changes in the global monetary landscape, and to enhance the quality, efficiency and service capabilities of the digital yuan, he said.

China has been piloting the digital yuan, or e-CNY, in selected cities and use cases over the past several years, including for retail payments, public services and cross-border experiments.

While the digital currency remains a complement rather than a replacement for cash, policymakers have increasingly framed it as part of China’s broader push to modernise its payment infrastructure, improve financial inclusion and strengthen the resilience of its financial system.

Lu said the updated framework would help integrate the digital yuan more deeply into the economy, supporting innovation in payment services while maintaining financial stability and regulatory oversight.