As reported by cointelegraph.com on October 24, 2020, China’s central bank lays regulatory foundation for CBDC.
China’s central bank, the People’s Bank of China (PBOC), published a draft law in order to provide regulatory framework and legitimacy for a forthcoming central bank digital currency (CBDC), the digital yuan. The draft law expresses that the yuan is the official currency of the People’s Republic of China whether in physical or digital form. The draft law take aim at third-party efforts at yuan-backed digital currencies, stating that individuals and institutions are prohibited from making and issuing a currency designed to “replace” digital yuan circulation. This move would apparently criminalize all non-state-sanctioned yuan-backed stable coins. And the punitive measures against violators of this proposed law are harsh.
China hopes to start regularly issuing the digital yuan before the Winter Olympics in Beijing in February 2022.