(Yicai) Aug. 18 -- The People's Bank of China has expanded the number of authorized institutions for digital yuan operations to 30 to promote the steady development of the currency, improve accessibility, and enhance the inclusiveness of relevant services.

Ping An Bank, Evergrowing Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha, and Guangxi Beibu Gulf Bank have been added as digital yuan operators, the PBOC announced on its website yesterday. The eight lenders were linked to the central bank's digital yuan system.

The PBOC launched the digital yuan network with six state-owned large lenders, two national joint-stock commercial banks, and two internet banks. On April 2, it made its only prior expansion, adding 12 lenders, including seven joint-stock and five city commercial banks.

The latest expansion can fully mobilize the enthusiasm of various commercial banks to participate in the digital yuan business, said Wang Pengbo, chief financial industry analyst at Broadcom Consulting. It is beneficial for the currency to further penetrate local markets and broaden online and offline application scenarios, Wang added.

In addition, the entry of more institutions will foster a fairer competitive market environment, Wang noted, adding that in the long run, this can facilitate the transition of the digital yuan from the pilot phase to a more normalized and large-scale application.

Starting this year, the PBOC implemented an action plan for further strengthening the management and service system of the digital yuan and related financial infrastructure construction. The plan says that banks are to pay interest on the balances of customers' real-name digital yuan wallets, adhering to the self-discipline agreement on deposit interest rate pricing.

The arrangement initially formed a compatible incentive structure, allowing lenders to independently manage their asset and liability operations concerning e-yuan wallet balances.

In the future, the scope of digital yuan operating institutions will be gradually expanded under the premise of controllable risks, experts said at the start of this year. The PBOC will evaluate institutions based on their risk management capabilities, technological strength, and retail business capacity to ensure fair competition and comprehensive service coverage, they noted.

Editor: Martin Kadiev