Investigation Launched into Architect of China’s CBDC Project for Alleged Wrongdoings
Ruholamin Haqshanas
Last updated:
April 26, 2024 08:25 EDT
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2 min read
Yao Qian, the influential figure behind China’s central bank digital currency (CBDC) project, is currently under investigation for suspected misconduct.
Qian played a crucial role in spearheading the research at the People’s Bank of China (PBOC) to develop and issue a digital yuan, as stated in a report by state-owned news outlet Shanghai Securities News.
However, he left the central bank in 2018 and has since been working at the China Securities Regulatory Commission.
Specific details regarding the allegations against Qian have not been disclosed.
Qian’s Impact on the CBDC Project
Qian’s involvement in the CBDC project had a significant impact not only in China but also globally.
The development of China’s digital yuan project served as a catalyst for other major jurisdictions worldwide to explore the concept of central bank-issued digital currencies.
The investigation into Qian’s alleged wrongdoing comes at a time when China is making significant progress in the implementation and testing of its digital yuan, also known as the Digital Currency Electronic Payment (DCEP) system.
According to reports, the disciplinary review and supervision of the investigation are being carried out by the Discipline Inspection and Supervision Team of the State Commission for Discipline Inspection at the China Securities Regulatory Commission, as well as the Supervisory Committee of Shanwei City, Guangdong Province.
According to the Atlantic Council CBDC tracker, 130 countries, representing 98% of global GDP, are currently exploring a CBDC, while 19 of the G20 countries are in the advanced stage of their CBDC development.
In total, 11 countries have fully launched a CBDC, including China, The Bahamas, Nigeria, Anguilla, Jamaica, and seven Eastern Caribbean countries.
It is important to note that the United States is among the few countries that have no confirmed plans to launch a digital currency. However, the country is still progressing with a wholesale (bank-to-bank) CBDC.
China’s Central Bank Addresses Crypto Regulation
In its latest financial stability report, the People’s Bank of China (PBoC) discussed issues related to cryptocurrency regulation and decentralized finance.
The Chinese central bank emphasized the need for global collaboration to effectively regulate the industry.
In 2021, the PBoC announced measures to combat the adoption of cryptocurrencies in mainland China, advocating for stronger inter-departmental coordination to crack down on crypto activities.
Despite the ban on virtually all crypto transactions and cryptocurrency mining, mainland China has remained a major crypto-mining hub.
As reported, China is set to revise its outdated anti-money laundering (AML) law to address the increasing risks associated with virtual assets.
The draft amendment, discussed at a State Council meeting chaired by Chinese Premier Li Qiang, will soon undergo review by the national legislature.
While the full details of the proposed amendment have not been disclosed, legal scholars have indicated that its primary objective is to combat money laundering involving virtual assets.
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