The president of the Nanjing branch of the People’s Bank of China (PBC) proposed to amend the legislation to clarify the status of the digital yuan.
Guo Xinming made the proposal during a speech at the annual PBC plenary meeting, where the further development of the Chinese economy was discussed. There is currently no clarity on how money in the new digital formats can be used, Xinming said. Therefore, in order to prepare for the full deployment of the digital yuan, specific legal regulations for the use of CBDCs need to be established. It is necessary to enshrine in the law that the digital yuan can be considered the legal tender of the country on a par with paper banknotes and coins, the head of the Nanjing branch said.
Xinming suggested that the law should clearly define the relationship between the physical and digital yuan and spell out the duties and responsibilities of commercial banks using the central bank’s digital currency. It is also recommended to designate new entities that will emphasize the digital yuan in order to meet the needs of users in the event of network failures or natural disasters.
According to PBC, as of the end of 2021, Chinese citizens have made transactions with digital yuan worth more than 87 billion yuan ($11.2 billion), and the number of e-CNY wallets has exceeded 261 million. It is also known that during the Beijing Winter Olympics The digital yuan has surpassed the Visa payment system in terms of the number of transactions.
A few months ago, PBC’s Xiong’an branch warned the public about an increase in e-CNY scams.
Source: Bits
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