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The Digital Yuan (e-CNY) is the legal digital currency issued by the People's Bank of China. It holds the same legal tender status as physical paper currency and is backed 1:1 by China's national fiat currency, the Renminbi (RMB). Built on a centralized, two-tier operating system, the e-CNY is distributed through authorized commercial banks to individuals and businesses. It supports high-speed transactions exceeding 300,000 per second and features "dual offline" payment technology, allowing two devices to complete a transaction without an internet connection. The e-CNY offers tiered anonymity — small-value wallets require only a phone number for privacy, while real-name wallets comply with anti-money laundering regulations. As of 2026, the Digital Yuan has become the world's first central bank digital currency to pay interest on holdings, with real-name wallets earning a quarterly interest rate of 0.05%. The system supports limited, approved smart contracts for controlled applications such as prepaid services, government subsidies, and family budget management. Security is enforced through multi-layer encryption, digital signatures, secure hardware chips, and double-spending prevention mechanisms. With over 230 million personal wallets and 16.7 trillion yuan in cumulative transaction volume across 26 pilot regions, the Digital Yuan is the most widely deployed and feature-rich central bank digital currency in active use today.