China’s central bank, the People’s Bank of China (PBOC), published a draft law to provide regulatory framework and legitimacy for a forthcoming central bank digital currency (CBDC), the digital yuan (e-yuan). The draft law states that the yuan is the official currency of the People’s Republic of China whether in physical or digital form. The Central bank also prohibited third parties from making and issues a currency to replace the digital yuan in circulation.
The People’s Bank of China clarified that the draft of the new law is on the table for public consultation until November 23, 2020.
It has been noted that China hopes to issue its CBDC digital Yuan before February 2022. Earlier this month, China conducted a major test of Shenzhen’s digital yuan payment system, where nearly 47,500 residents claimed 200 yuan ($30) each in digital currency which they then spent across 3,389 stores throughout the city.