Legal framework for digital yuan to be presented in November

by in Cryptocurrency News

Digital Yuan

At the end of last week, the People's Bank of China presented the public with a digital currency regulation (CBDC) bill. Then the regulator announced that the final version of the document would be ready by the end of November.

The bill states that the digital yuan will be recognized as the official crypto of the PRC. Only the national issuer in the form of the Central Bank has the right to issue tokens.

Individuals and legal entities are prohibited from issuing any stablecoins also backed by RMB. Thus, the regulator made it clear that only the token issued by the Central Bank can legally be used in the Chinese market.

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Observers predict that the ban on the issuance of third-party coins, even those backed by the yuan, will lead to the expansion of the shadow cryptocurrency market in the Middle Kingdom.

The central bank promises to apply sanctions against those who violate the above prohibition, up to criminal punishment. The regulator promises to liquidate all third-party tokens and confiscate profits.

The People's Bank of China promises to submit the final version of the digital yuan regulation bill by November 23, 2020. As a reminder, China wants to start issuing CBDC before the Beijing Olympics in February 2022. Recently, the Central Bank reported on a successful test of the digital yuan in several major cities in the country.