The People’s Bank of China has published a draft law that would give legal status to its central bank digital currency or the digital yuan.
“The legal currency of the People’s Republic of China is Renminbi,” the draft law states. “RMB includes physical form and digital form … No unit or individual may produce or sell tokens, coupons and digital tokens to replace RMB in circulation in the market.
According to a translation by journalist Wolfie Zhao, the measure includes the provision “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 bill also bans organizations and individuals from making or issuing digital currencies.
China recently held a public test of the digital Yaun in Shenzhen where the authorities gave away 200 yuan (about $30) to 50,000 residents to spend at 3,389 stores.
