China Proposes Global Rules For CBDCs, Expands Digital Yuan Trials
- A representative of the PBoC has proposed synchronizing CBDC fund flows around the world, as to assist regulators in monitoring the transactions for compliance.
- Chinese citizens can now apply for a digital yuan wallet with one of the six state owned banks in Shanghai and Beijing.
Chinese President Xi Jinping at a press conference after a meeting with the German Chancellor in the Chanclery in Berlin, 5 July 2017. Shutterstock
China has proposed a number of global rules for Central Bank Digital Currencies (CBDCs) during a seminar at the Bank of International Settlements (BIS), Reuters reported on 25 March.
According to the publication, the set of rules were proposed by the director of China’s Digital Currency Research Instituted, Mu Changchun, who said that CBDC fund flows should be synchronized to assist regulators in monitoring the transactions for compliance. He further advised the gathering of monetary authorities that its important to enable interoperability between CBDC systems from different jurisdictions. Changchun said in a statement:
“Information flow and fund flows should be synchronised so as to facilitate regulators to monitor the transactions for compliance. We also propose a scalable and overseen foreign exchange platform supported by DLT (distributed ledger technology like blockchain) or other technologies.”
During the seminar, the official from the People’s Bank of China (PBoC) also said his country was developing its digital yuan as a “back-up” payment option for Alipay and WeChat Pay, which he claimed were responsible for 98% of the mobile payments in China, Bloomberg reported on 26 March. He further said China needed the CBDC in case “something bad” happened to Alipay and WeChat Pay, which would definitely have a “negative impact” to the financial stability of China.
The country is also expanding its digital yuan tests, with the six major state-owned banks now allowing members of the public to apply for a digital yuan wallets in Shanghai and Beijing, Beijing Business Times reported on 24 March. The applications, however, will not be automatically approved, with the PBoC stating that it will review each application on a case-by-case basis. An employee at the Postal Bank of China told the publication:
“Although the application criteria has not loosened up, we’ve opened it up to the public so the process is less restrictive than before. As the review process goes digital, the speed of getting applications approved will be much faster later on.”
Citizens interested to participate in the CBDC trial will need to fill in their real names, ID and mobile phone numbers, email and employee names. If approved, users will be able to download the digital yuan wallet, which will have a payment limit of 1,000 yuan daily.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The team behind Multichain confirmed that their CEO was detained in China on 21 May, and that all of his electronic devices were confiscated by the local police.
- The CEO’s sister moved the project’s remaining funds to wallets under her control on 9 July, and several days later was also detained by the police, leaving the team with no funds.
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.