Starting January 1st, the central bank introduced interest-bearing functionality for digital yuan accounts, fundamentally reshaping the competitive landscape between CBDC and traditional banking. Commercial banks can now credit interest on verified e-CNY balances, effectively positioning the digital currency as a direct alternative to conventional deposits. This move represents a significant pivot in the central bank's CBDC adoption strategy, signaling intensified efforts to consolidate digital payment infrastructure while simultaneously establishing clearer boundaries with the broader crypto ecosystem. By enhancing yield incentives, authorities aim to accelerate mainstream adoption of the e-CNY, demonstrating how institutional-grade digital currencies are evolving to compete directly with decentralized finance narratives.