Chinese banks are exploring new ways for RMB users to earn interest on their central bank digital currency assets through “smart management” tools. They should detect periods when funds have not been used for an extended period of time.
The People’s Central Bank of China (PBoC) states that the main purpose of the digital CNY is to function as a retail payment instrument. This means that the contents of digital CNY wallets cannot be of interest when they are not in use.
However, some commercial banks are drawing attention to the fact that people may not have time to convert their digital CNY assets into fiat in order to earn interest. This is when algorithms are needed that automatically convert funds from digital wallets in RMB into fiat and then transfer them into deposit accounts.
One bank offering these services has been 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 fiat savings accounts.
China Construction Bank has developed a similar solution, calling this feature “Automatic Combined Payment”. The maximum amount in fiat in a single transaction is $ 743. The daily limit is currently set at $1,488 for combined payments.