# China digital yuan infrastructure expansion > Developing situation record from CLSTR: https://clstr.news/situations/china-digital-yuan-infrastructure-expansion > Updated: 2026-10-30T00:55:02.000Z. Sources: 4. Developments: 2. The People’s Bank of China (PBOC) has implemented significant upgrades to the digital yuan (e-CNY) technical architecture and monetary framework. A key structural change occurred when the monetary classification of digital yuan in commercial bank real-name wallets transitioned from M0 (cash) to M1/M2 (deposits), allowing these wallets to earn interest and receive deposit insurance. To support this, the PBOC introduced the Digital Currency Electronic Payment System (DCEPS) and a new smart contract service architecture. These tools are designed to integrate issuance, retail and wholesale payments, and blockchain capabilities into a single system to reduce liquidity management costs. On an international scale, the system is expanding through the Cross-border e-CNY Transfer Services (CBETS) platform and the Digital Yuan International Operation Center in Shanghai. These developments, supported by initiatives such as Project mBridge, aim to facilitate cross-border settlements that bypass traditional SWIFT networks and US dollar-denominated clearinghouses, particularly within Asian and Middle Eastern supply chains. ## Timeline ### 2026-10-30: China upgrades digital yuan infrastructure and monetary classification China has upgraded its digital yuan infrastructure, transitioning real-name wallets from cash substitutes to interest-bearing deposits to boost commercial bank participation and cross-border efficiency. 2 sources. https://clstr.news/cluster/china-upgrades-digital-yuan-infrastructure-and-monetary-classification ### 2026-10-25: China expands digital yuan infrastructure with new payment and smart contract systems China has launched the DCEPS and a smart contract framework for the digital yuan, aiming to streamline e-CNY payments and automate trade finance across international supply chains. 2 sources. https://clstr.news/cluster/china-expands-digital-yuan-infrastructure-with-new-payment-and-smart-contract-systems --- Cite as: China digital yuan infrastructure expansion. CLSTR, https://clstr.news/situations/china-digital-yuan-infrastructure-expansion