A year ago there were 10 banks participating in China’s digital RMB, which was technically a CBDC at that point. In March the central bank expanded the group to 22 and has now added another eight banks (see below), mainly regional institutions. In its announcement the People’s Bank of China said it would continue to expand the number of supporting banks in an orderly fashion consistent with market oriented principles.
While the central bank still coordinates the digital RMB and operates part of the infrastructure, since the start of the year the second iteration of the digital currency is technically a digital bank deposit. The vast majority of people hold the digital currency via a bank supplied wallet, and the digital RMB is a liability of that commercial bank, not the government. The banks are also free to pay interest on the deposits.
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