Digital Yuan-themed scam: Chinese police warns residents to be careful

Digital Yuan

TL;DR Breakdown

  • Chinese police warn residents of a CBDC-related scam.
  • The fraudsters claimed that they are digital Yuan promoters.
  • So far, they have successfully duped not less than 500 citizens.

Police caution residents over Digital Yuan scam

One of the fore complaints of cryptocurrency is that it is used as a front for criminal activities. Right now, it appears that Chinese fraudsters are now targeting digital Yuan. Some companies in China have been duping citizens of their hard-earned money under the pretext that they are promoters of the national digital currency.

The imposters hide under the guise that they are issuers of a digital Yuan wallet, with the company name “Central Bank’s International Wallet”. However, the local police have flagged them as a scam, warning the locals to be careful of the group. The fraudsters lure their victims by promising them access to a non-existent fund worth $186M.

Furthermore, the scammers allegedly revealed that their targets were people who could afford $24,800. Even though the supposed wallet has not launched yet, the fraudsters have succeeded in duping not less than 500 people.

China continues to develop a solid framework for Digital Yuan

The group made their victims believe that the money raised would be used to promote digital Yuan on both national and global scales. They promised their victims a 2% bonus on every deposit. The People’s Bank of China has cautioned residents concerning organizations that request their funds to promote digital Yuan.

China has been in the lead in terms of CBDC development as a report revealed earlier this month that it was aggressively investing in the project. However, the country has continued to create an underground framework for the CBDC ecosystem.

To boost the early adoption of Digital Currency Electronic payment, many municipal authorities have performed various airdrops and lotteries. Also, a certain Chinese bank now allows its customers to convert their funds into digital Yuan using their phones or through an ATM.

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Kamsi King

Written by Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.