Central Bank of China intends to criminalize all yuan-backed private stablecoins

The People’s Bank of China has submitted a draft law laying down the regulatory framework for the introduction of a central bank digital currency, which also criminalizes the issuance of yuan-based private stablecoins.

The bill published by the Central Bank establishes that the digital yuan is the official currency of the People’s Republic of China on par with physical money. Since the regulator plans to legalize a new form of legal tender, it wants to ban all non-government counterparts, effectively making them illegal..

The text of the document says that in addition to the confiscation of profits, the destruction of all tokens and a fine, five times the cost of the issue, violators may  face criminal liability up to and including imprisonment.

Central Bank of China intends to criminalize all yuan-backed private stablecoins

For now the bill is pending public review. The discussion will last until November 23 of the current year.

NBK plans to officially launch digital yuan by February 2022 and is already conducting open trials new payment system in several cities.

text: Ivan Malichenko, photo: Shanghai Daily

Central Bank of China intends to criminalize all yuan-backed private stablecoins

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