Investigation Launched into Key Architect of China’s CBDC Project for Suspected Wrongdoings
Renowned figure Yao Qian, who played a crucial role in spearheading China’s central bank digital currency (CBDC) project, is currently under investigation for alleged “violations of discipline and law.”
Qian, who led the research efforts at the People’s Bank of China (PBOC) to develop and launch the digital yuan, left the central bank in 2018 and has since been working at the China Securities Regulatory Commission.
Specific details regarding the allegations against Qian have not been disclosed.
Qian’s involvement in the CBDC project not only had a significant impact within China but also globally. The development of China’s digital yuan project served as a catalyst for other major jurisdictions to explore the concept of central bank-issued digital currencies.
The investigation into Qian’s alleged wrongdoing comes at a time when China is making significant progress in the implementation and testing of its digital yuan, also known as the Digital Currency Electronic Payment (DCEP) system.
The disciplinary review and supervision of the investigation are being carried out by the Discipline Inspection and Supervision Team of the State Commission for Discipline Inspection at the China Securities Regulatory Commission and the Supervisory Committee of Shanwei City, Guangdong Province.
According to the Atlantic Council CBDC tracker, 130 countries, representing 98% of global GDP, are currently exploring the development of a CBDC, with 19 of the G20 countries being in the advanced stage of their CBDC projects.
Eleven countries have already fully launched a CBDC, including China, The Bahamas, Nigeria, Anguilla, Jamaica, and seven Eastern Caribbean countries.
It is worth noting that the United States has not confirmed any plans to launch a digital currency, although it is actively working on a wholesale (bank-to-bank) CBDC.
In its recent financial stability report, the People’s Bank of China (PBoC) addressed issues related to cryptocurrency regulation and decentralized finance. The central bank stressed the importance of international cooperation in effectively regulating the industry.
In 2021, the PBoC announced measures to combat the adoption of cryptocurrencies in mainland China and called for stronger coordination between departments to crack down on crypto activities.
Despite the ban on most crypto transactions and mining, mainland China remains a significant hub for crypto mining.
China is now set to revise its outdated anti-money laundering (AML) law to address the growing risks associated with virtual assets. The draft amendment will undergo review by the national legislature and aims to combat money laundering involving virtual assets.
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