- China is imposing limits on different areas post Digital Yuan launch.
- Digital Yuan would only be used at the Commercial banks.
- Alipay and WeChat also prohibited to use Digital Yuan.
The central bank of China has extended the law to improve Digital Yuan’s accessibility. The law revision opens the public to exchange the digital unit at designated commercial banking institutions as per official reports.
E-wallet facility will be provided by Alipay and WeChat. Using these people will be able to make digital payments confirmed by the head of the People’s Bank of China’s (PBOC) digital currency research institute Mu Chanchun.
Limitations before Digital Yuan launch
Last week, the PBOC imposed a ban on all Digital Yuan backed cryptocurrencies in addition to an existing ban on cryptocurrency trading. Now the newly revealed draft of the newly implemented law on Friday to raise public thinking. The draft states the availability of the digital version of the Yuan in both physical and digital structures. Moreover, it forbade nonregulated institutions from circulating any other digital currency remotely.
A centralized Yuan management program will be continued to manage all aspects of the digital currency like that of issuance amount, regulations, design, security, and technical standardization.
PBOC’s Head MU further highlighted the bank’s intent to collaborate with certified financial institutions in order to provide secure and reliable digital wallet platforms to its public. He further discussed the concerns old aged public and certain classes would have with the introduction of the new technology and the developmental pipeline of products to facilitate digital Yuan dealings in order to tackle them.
While the official availability of public is due, implementation trials have been opened to certain sectors like that of retail. All the signs clearly point that China is all set to make Digital Yuan more accessible, and trials may soon include more sectors by mid-2021, said the head of the blockchain research working group at the National Internet Finance Association of China and ex-president of Bank of China, Li Lihui.
Li added China’s central bank law revision would be legalized and build a strong foundation for Digital Yuan issuance and usage across the country. So far, a total of Yuan 10 million (USD 1.49) has been extended to the public for use at certain shopping outlets, supermarkets, restaurants, and retailers who accepted to deal with the new currency.