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People’s Bank of China Updates CIPS Rules to Include Digital Currency Unit

People’s Bank of China Updates CIPS Rules to Include Digital Currency Unit

The PBoC’s revised CIPS framework, effective February 2026, adds its Digital Currency Institute and expands support for multiple settlement types in cross-border RMB transactions.

Fact Check
The evidence from the high-authority, high-relevance sources strongly supports the statement. The most compelling evidence comes from the SCMP news report (and its syndicated version), which details a recent announcement by the People's Bank of China (PBOC) about expanding the cross-border use of the digital yuan (e-CNY). The report explicitly mentions the PBOC's pledge to use the Cross-Border Interbank Payment System (CIPS) to promote the e-CNY. This constitutes a significant policy update directly from the relevant authority.Furthermore, another source highlights the 'integration' of the mBridge digital currency project with the CIPS network. Integrating a new form of currency, such as a CBDC, into a major international payment system like CIPS would inherently require updating its technical and regulatory framework, which is tantamount to updating its rules. While the sources do not quote the exact text of a formal "rule update," the described actions—a public pledge by the central bank and the technical integration of a digital currency project—are functionally equivalent and make the statement highly probable. The other sources are either too general, contextual, or irrelevant to contradict this conclusion. There is no conflicting evidence among the credible sources.
Summary

The People’s Bank of China will implement updated Cross-Border Interbank Payment System rules on February 1, 2026, replacing the 2018 framework. The revisions retain strict liquidity controls—requiring zero balances at day’s end and prohibiting overdrafts—while adding the PBoC’s Digital Currency Institute to the list of designated institutions. The updated framework supports real-time gross settlement, timed net settlement, payment versus payment (PvP), delivery versus payment (DvP), central clearing, and other cross-border RMB transaction capabilities. These changes aim to strengthen operational flexibility and security in China’s currency settlement system.

Terms & Concepts
  • Cross-Border Interbank Payment System (CIPS): A China-based payment and settlement system designed for cross-border transactions in the Chinese yuan (RMB).
  • Payment versus Payment (PvP): A settlement mechanism ensuring that payment in one currency occurs if and only if payment in another currency is made.
  • Delivery versus Payment (DvP): A securities settlement method where delivery of securities occurs only after payment is received.