China’s Digital Yuan Operations and Management Center has introduced two additions to the digital yuan’s (e-CNY) operating infrastructure: DCEPS, a central bank payment system, and the e-CNY SMART Contract framework.
The launches come as e-CNY activity has reached a substantial volume. Figures reported from the meeting by Xinhua show that, as of the end of September 2026, participating areas had recorded 4.3 billion digital yuan transactions. These transactions were worth approximately USD 4.6 trillion.
DCEPS combines issuance and services
An official at the Digital Currency Research Institute of the People’s Bank of China (PBOC) described DCEPS as bringing several functions together. These are issuance management, retail and wholesale services, blockchain functions, and smart contracts. The official also said the system could lower access and liquidity management costs, according to Xinhua.
The scope of DCEPS covers both retail and wholesale services. It also places blockchain and smart contract capabilities in the same system as issuance management. For participating institutions, the cost reductions the official cited relate specifically to accessing the system and managing liquidity.
The e-CNY SMART Contract framework is built on a shared platform and common standards. It is intended to help financial institutions combine smart contract services for their customers, Xinhua reported.
Smart contracts automate the execution of digital agreements. The report described them as a way to address three problems: high trust costs, poor coordination, and difficulties in overseeing funds.
Implications for the e-CNY ecosystem
Taken together, the two launches pair central bank payment infrastructure with a standardised layer that financial institutions can build on. DCEPS consolidates core e-CNY functions, from issuance to wholesale services, into one system, while the SMART Contract framework applies common standards to how institutions combine and offer smart contract services to customers.
The PBOC official framed the expected benefits in terms of lower access and liquidity management costs. The framework itself targets issues of trust, coordination, and fund oversight. With 4.3 billion transactions recorded by the end of September 2026, both products have been introduced into an e-CNY network that already handles substantial transaction volumes.
