Looks like China is at the end of its testing phase for the digital yuan, as the People’s Bank of China (PBoC) is reportedly seeking public feedback to revise its current banking regulations, which aims to legalize digital yuan but prohibit the circulation of yuan-pegged digital tokens.
According to a notice published on October 23, the central bank is accepting public feedback until November, for the revision draft. The new proposal looks to include the wording that “Renminbi includes both a physical form and a digital form.”
The revision is part of the central bank’s plans to lay out a path that would facilitate a wider rollout of China’s long-anticipated central bank digital currency dubbed the digital yuan initiative.
Furthermore, Article 22 under Section 3 in the proposal states that “any individual or entity shall not make or issue any tokenized note or digital tokens that replace the Renminbi’s circulation in the market.”
“For anyone that violates such regulation, the PBoC will halt such activities and forfeit any proceed from the making and selling of yuan-backed digital tokens and issue a fine that is up to five times of the involved proceeds,” the draft said.
The baking regulations currently in place have been active since 2003. The policies outline the role of the nation’s central bank in issuing sovereign fiat currency as well as drafting and executing monetary policies to maintain financial stability.
China making rapid CBDC progress
The report comes amidst China continuing to test its digital currency across the nation. The Digital Yuan is being touted as a move that will give China an edge in the digital payments space.
It looks like China is setting the pace in the central bank digital currency space, with its program already being tested by a number of big banks and major payment service providers in the country.
Last month, Chinese e-commerce giant JD.com partnered with the PBoC to develop mobile apps and digital wallets in a bid to support the country’s CBDC.
More contenders join the tech race
The CBDC scene is heating all across the globe as major nations are announcing their respective digital currency projects.
The latest report comes from Russia, which according to a member of parliament, could start testing its digital ruble in late 2021. The token would also be used on DLT platforms, and businesses would be able to utilize it to track goods across the supply chain.