Yuan Xiaobin, a member of the National Committee of the Chinese People’s Political Consultative Conference and Chairman of the Zhonghao Law Firm Management Committee, has shown special concern for the digital yuan.
He believes that although the digital yuan has played an important role in anti-money laundering and other areas since the pilot projects were launched in 2020, there are currently no specific regulations on the standards and technical specifications of the digital yuan. This could lead to some risks, including leakage of user asset information, as its underlying technology is still relatively immature during the testing phase.
Yuan Xiaobin emphasizes that the digital yuan is still in the testing stage and few people have a deep understanding of the business operations related to it. As third-party payment platforms such as WeChat and Alipay have emerged early and gained wider acceptance in the market, adopting a new payment method will face challenges in the short term.
He proposes the need to revise and improve related laws and regulations such as the People’s Bank of China Law and the Anti-Money Laundering Law, as well as the need to establish specific and clear regulations on the issuance of digital yuan, anti-money laundering, and consumer protection.
The proposal also includes the establishment of principles for legal compensation and the promotion of the use of digital yuan, as well as the promotion of its practical applications in stages. Additionally, the relationship between digital yuan, cash, and deposits needs to be clarified, and there must be a free exchange mechanism and corresponding processes must be transparent.
