Yao Qian, the key figure behind China’s central bank digital currency (CBDC) project, is currently under investigation for suspected “violations of discipline and law.”
Qian, who played a pivotal role in spearheading the research efforts at the People’s Bank of China (PBOC) for the development and issuance of a digital yuan, according to a report by state-owned news outlet Shanghai Securities News, has been under scrutiny since his departure from the central bank in 2018. He has since been working at the China Securities Regulatory Commission.
Specific details regarding the allegations against Qian were not disclosed.
Qian’s influence on the CBDC project extended not only within China but also globally. The development of China’s digital yuan project served as a catalyst for other major jurisdictions worldwide to explore the concept of central bank-issued digital currencies.
The investigation into Qian’s alleged misconduct coincides with China’s significant progress in implementing and testing its digital yuan, also known as the Digital Currency Electronic Payment (DCEP) system.
According to reports, disciplinary review and supervision of the investigation are being carried out by the Discipline Inspection and Supervision Team of the State Commission for Discipline Inspection at the China Securities Regulatory Commission, as well as the Supervisory Committee of Shanwei City, Guangdong Province.
Despite Qian’s investigation, China continues to make strides in its digital currency initiatives. The country’s central bank recently addressed issues related to cryptocurrency regulation and decentralized finance (DeFi) in its latest financial stability report. The report emphasized the need for international cooperation in regulating the cryptocurrency industry effectively.
In 2021, the PBoC announced measures to combat the adoption of cryptocurrencies in mainland China, advocating for stronger inter-departmental coordination to crack down on crypto activities. Despite the ban on virtually all crypto transactions and cryptocurrency mining, mainland China has remained a major crypto-mining hub.
China is also set to revise its outdated anti-money laundering (AML) law to address the increasing risks associated with virtual assets. The proposed amendment aims to combat money laundering involving virtual assets and is currently undergoing review by the national legislature.
