China’s Central People’s Bank (PBOC) has drafted a law to legalize digital renminbi and prohibit digital currencies issued by anyone else competing with it. At the same time, the central bank has been cracking down on gambling websites that use stable currency chains.
China drafts law to recognize digital renminbi
The People’s Bank of China announced a draft law last Friday that gives its Central Bank Digital Currency (CBDC) digital renminbi legal status. The Central Bank has also begun a public consultation on the draft law; comments can be submitted before November 23.
“The legal currency of the People’s Republic of China is RMB [RMB]”, the draft law states:
The renminbi includes physical and digital forms…Any unit or individual is not allowed to produce or sell tokens, coupons and digital tokens to replace the renminbi circulating in the market.
The wording of the law seems to target stable currencies linked to the renminbi, but the ban may also include other digital currencies that the People’s Bank of China believes poses a threat to the renminbi.
China has been vigorously testing the digital yuan. A public test was recently launched in Shenzhen, where the authorities gave 50,000 residents 200 yuan (approximately US$30) for consumption in 3,389 stores.
China cracks down on gambling websites
The central bank outlined its efforts to crack down on cross-border gambling websites in a WeChat released on Friday that enable Chinese citizens to bypass China’s capital controls and transfer funds abroad.
According to the post, the People’s Bank of China recently assisted the local police in Huizhou in cracking down on cross-border online gambling sites suspected of using tether (USDT) to launder money. Three gambling establishments worth nearly 120 million yuan were closed, and 77 suspects were arrested.
What do you think of China stifling competitors to the digital renminbi? Let us know in the comments section below.
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