NBK proposes to ban issuance of RMB-pegged tokens

People's Bank of China (NSC) suggested amending the Law on the Central Bank of the PRC, implying a ban on the release of tokens, tied to Chinese yuan.

According to the NBK proposal, China's state cryptocurrency called Renminbi (RMB) should be legalized in material and digital form. However, no individual or legal entity should produce any tokenized assets or digital currencies to replace a digital yuan in the market. For violation of the legislation, confiscation of all proceeds is provided, obtained from the sale of secured by digital Yuan tokens. Besides, The issuers of these tokens will have to stop their activities and pay a fine, five times higher than the amount of income received.

The current version of the Law on the Central Bank of the PRC is valid with 2003 of the year. According to this law, NBK is engaged in the release of national fiat currency, and also determines and pursues a credit-money policy to ensure the financial stability of the country. The initiative of the Chinese Central Bank is aimed at preparing a regulatory framework before a large-scale launch of a digital yuan. The regulator is ready to discuss this initiative with all interested parties and accepts comments before 23 November 2020 of the year.

Earlier, deputy manager of the People's Bank of China (NSC) Yepai Fan (Yifei Fan) said, that the digital yuan will be equivalent to the usual yuan and will be regulated by the same laws, which are applied to fiat currency. Besides, A few days ago, the NBK management announced the need to speed up the launch of the state digital currency, Since companies and citizens of the country need it, Especially during pandemia.

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