Digital yuan system upgraded to expand services

China has upgraded its digital yuan infrastructure to integrate a wider range of payment and financial services, unveiling an upgraded central bank system for the digital yuan and a framework for smart contract services aimed at lowering operating costs and expanding the currency's use, according to the E-CNY Operation Management Center, which was established by the People's Bank of China, the central bank.

The upgrade follows the digital yuan's transition to a new operating framework on Jan 1, moving it beyond a cash-like digital payment instrument toward a form of digital deposit money, according to the PBOC.

The upgraded system integrates issuance management, retail and wholesale payments, blockchain and smart contract services. It is designed to lower system integration and liquidity management costs, and support applications ranging from everyday payments to trade financing and financial settlements.