China’s central bank has issued a statement ordering commercial banks to cut off all digital currency-related activities, including over-the-counter digital currency trading merchants.
The three groups believe that digital currencies are disrupting China’s economic order and urged traders to be cautious when investing in digital currencies, which “are not real currencies.”
JD.com confirmed recently that aside from the employees, it has also been paying off some of its business partners with the digital currency.
Li Bo, the deputy PBoC governor, said the apex bank is satisfied with the current digital currency regulations in China, but would seek to enforce even stricter rules for stablecoins.
In its latest test, the PBoC has partnered with the Industrial and Commercial Bank of China’s Haikou branch and the Sansha city municipal government.
The controllable anonymity will protect the central bank digital currency against criminal use and ensure the bank can track all payments the users make, according to a central bank official.
China and the United Arab Emirates have joined a research initiative that studies the feasibility of a central bank digital currency.
Unlike in Shenzhen, Beijing and Suzhou, the People’s Bank of China is expanding beyond the use of smartphones to make digital yuan payments.
China had learned a lesson from the hostile reception Libra, now Diem, has received globally, according to the former governor of the People’s Bank of China.
Chinese residents in the city of Suzhou made close to 20,000 transactions in a digital yuan trial on e-commerce giant JD.com.
Hong Kong’s central bank has been working with China’s digital currency institute to trial the use of the digital yuan on cross-border payments.
The PBoC’s Digital Currency Research Institute announced that it was planning to build a ‘legal digital currency test zone’ in Beijing.
