China’s central bank – the People’s Bank of China (PBOC) – reportedly released a draft bill, aimed at establishing a regulatory framework and legitimacy, for the nation’s anticipated CBDC – the digital yuan.
Specifically, the draft bill reportedly claimed that the yuan will function as the official currency of the People’s Republic of China, both physically and digitally.
The draft bill reportedly also seems to target attempts from 3rd-parties at yuan-backed digital currencies, saying that individuals or entities are banned from the creation and issuance of a currency, built to “replace” digital yuan circulation.
Anyone who violates the law will reportedly suffer from dire consequences – most nominally would be profits confiscation, token destruction, along with a fine with a 5-fold increased value to the illegal sum created, as well as potential criminal prosecution and jail time.
The People’s Bank of China reportedly specified further, claiming that the draft bill will be subjected to public consultation, with the deadline to be November 23, 2020.
Prior reports reportedly revealed China’s expectation to carry out the official issuance of the digital yuan, before the Winter Olympic in Beijing in February in 2 more years.
Moreover, in October, China reportedly carried out a major test of Shenzhen’s digital yuan payment system, with 200 yuan ($30) was issued to around 47,500 residents, in the form of digital currency, to be used in 3,389 stores located within the city.