Chinese banks are exploring new ways by which yuan users can earn interest on their assets in the form of a digital currency of the central bank at the expense of tools. They should detect periods when the funds are not used for an extended period of time.
The Central People’s Bank of China (PBoC) has stated that the main purpose of the digital CNY is to function as a retail payment instrument. This means that the contents of digital wallets in RMB cannot be of interest when they are not in use.
However, some commercial banks are paying attention to the fact that people may not have time to convert their digital yuan assets into fiat to earn interest. In this case, algorithms are needed that automatically convert funds from digital wallets in yuan to fiat, and then transferred to deposit accounts.
One of the banks offering these services was the large Industrial and Commercial Bank of China, which allows customers to customize their wallet settings to add digital yuan in excess of a certain amount to their fiat savings accounts.
