China Moves to Make Digital Yuan Legal Tender by Revising Central Bank Law
During the 2026 National People’s Congress sessions, deputy Fu Xiguo submitted a formal proposal to revise the 2003 People’s Bank of China Law so the digital yuan (e-CNY) is explicitly recognized as legal tender. Chinese regulators argued the current law no longer fits the demands of modern technology and that clearer statutory backing is needed for central bank digital currency operations. If adopted, the change would give legal clarity to e-CNY issuance and use, potentially accelerating merchant acceptance and integration with banking and payment infrastructure. The move matters for domestic adoption and regulatory precedent: it signals sustained state support for the CBDC and could influence how other jurisdictions frame legal and operational rules for digital currencies, while the final impact will depend on legislative details and implementation measures.