China CBDC: PBOC to continue Digital Yuan development despite CBDC scam

Sunil Sharma
November 9, 2021
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China

The latest development in China’s Central Bank Digital Currency, post the controversial CBDC scam, saw the People’s Bank of China reinstate its determination towards expanding and advancing the development of Digital Yuan. According to Reuter’s exclusive coverage of the Bank of Finland event, where the PBOC governor, Yi Gang spoke remotely about the Chinese authorities plan to improve the design and usage of Digital Yuan.

“Going forward, we will continue to prudently advance R&D of eCNY, improve its design and use.”, said Yi.

After the CBDC scam, Chinese authorities have guaranteed to improve the privacy protection and anti-counterfeiting features of Digital Yuan along with increasing its interoperability with existing payments tools. Furthermore, according to Yi Gang’s speech, China also plans to begin testing its CBDC’s impact on the nation’s monetary policy and financial markets.

Additionally, the governor noted that Digital Yuan will now also be focused on domestic retail payments in China. With China’s central bank’s digital currency crossing $10 billion in capitalization, along with over 140 million downloads of the government’s digital currency wallet, the authorities deem it ideal to work on improving design and usage instead of imposing an absolute ban like it did on cryptocurrency in the nation. The exceptional amount of approximately $9.7 billion transactions have been successfully processed via Digital Yuan. However, authorities have not announced an official launch date for the same, while the country continues Digital Yuan’s testing phase post its debut at the China International Import Expo (CIIE).

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China’s Digital Yuan Scam

Earlier this month, the authoritarian Chinese government fell face first when its promises of a secure and regulated digital currency failed with the first-ever CBDC scam in China. The Xinmi Public Security in collaboration with the Anti-fraud Center of the Zhengzhou Public Security Bureau arrested 11 suspects in the Fujian Province for illegally using digital Yuan to launder money. The authorities disclosed that China’s CBDC was being used as a medium to further launder money for an overseas fraud group hiding in Cambodia in the scam.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.