The latest update in China’s financial ecosystem saw the authorities make yet another attempt to push its Digital Yuan’s use, this time around by setting up a digital asset exchange in Beijing.
According to Bloomberg, the guidelines issued by the State Council point towards Beijing’s plans to look into establishing a bourse aka exchange for digital assets trading in lieu of boosting financial services in the capital. While the cabinet aims to speed up the nation’s Digital Yuan trials along with appealing banking giants to set up e-CNY operation firms, but there’s still no clarity about the details of the planned digital asset exchange as of now.
China Puts Blind Faith in its CBDC
Amid China’s fight against unregulated cryptocurrencies in the nation, as well as the authorities’ attempt to provide an alternative to decentralized digital currencies with its centralized digital yuan, there appears to be a lot going on in the country. One of China’s main reasons to implement a nationwide crypto ban was “consumer protection” given crypto’s unregulated nature. However, earlier this month, the nation’s authorities were presented with its first-ever CBDC scam. The Xinmi Police arrested 11 suspects in the Fujian Province for illegally using digital Yuan to launder money. The authorities disclosed that China’s CBDC was being used as a medium to further launder money for an overseas fraud group hiding in Cambodia in the scam.
Nevertheless, Chinese authorities assured the public that they’d ascertain this remains an isolated incident by improving the privacy protection and anti-counterfeiting features of Digital Yuan. Furthermore, the authorities guaranteed to increase Digital Yuan’s interoperability with existing payments tools.
Along with strengthening the security system, the Chinese authorities have decided against halting its CBDC trials. The PBOC governor, Yi Gang spoke remotely at the Bank of Finland event, regarding the authorities’ plan to improve the design and usage of Digital Yuan and reinstated the country’s determination toward its expansion and advancement.
“Going forward, we will continue to prudently advance R&D of eCNY, improve its design and use.”, said Yi.
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