Chinese CBDC Mastermind Yao Qian Investigated

One of the CBDCs developed by the Central Bank of China, the digital Yuan. (Photo; Doc. Pymints)

JAKARTA - Shocking news came from China. Yao Qian, the central figure behind China's central bank digital currency (CBDC) project, is currently the subject of investigation into alleged disciplinary and legal violations.

Qian, who has led research efforts at China's People's Bank (PBOC) to develop digital yuan, is now under the spotlight due to allegations that have not been explained in detail.

As an architect of China's CBDC initiative, Qian has made a significant contribution to the development of digital currencies that have prompted other major countries to explore similar concepts. However, its presence in China's Securities Regulatory Commission since leaving PBOC in 2018, has now become part of an investigation conducted by the Central Committee.

The investigation comes amid China's grand plan to implement and test the Digital Currency Electronic Payment (DCEP) system, known as digital yuan. According to a CBDC tracker from the Atlantic Council, there are currently 130 countries representing 98% of global GDP exploring CBDC, with 19 G20 countries in advanced development.

With 11 countries launching CBDCs, including China and the United States yet to have confirmed plans to launch its own digital currency, the world is witnessing a shift in the paradigm in the global financial system.

On the other hand, China's People's Bank (PBoC) also faces challenges in regulating the decentralized cryptocurrency and finance industries. PBoC has stressed the importance of international cooperation to effectively regulate the industry, especially after the steps taken in 2021 to combat cryptocurrency adoption in China.

In addition, China plans to revise the outdated anti-money laundering law (AML) to address risks related to virtual assets. This draft amendment, which was discussed at a State Council meeting, will soon undergo a review by the national legislative body.