Digital currency issued by the Chinese court (left) and actual banknotes (right). Photo by Yonhap News
[Asia Economy Reporter Hana Na] The digital code, which is accelerating the introduction of the legal digital currency (CBDC) 'Digital Yuan,' has taken steps to establish a legal basis to recognize it as legal tender.
The People's Bank of China, the central bank, recently announced a draft amendment to the People's Bank Law that includes the recognition of the Digital Yuan, a digital form rather than physical paper or metal, as legal tender, according to the state-run Xinhua News Agency on the 25th.
The amendment also contains provisions that no company or individual may issue or sell digital currency as part of risk control related to cryptocurrencies.
China will become the first major country in the world to officially use a central bank-issued digital currency.
China has been preparing for legal digital currency for several years. In particular, since early this year, closed internal experiments have been conducted in Shenzhen, Xiong'an, Suzhou, Chengdu, and venues scheduled to host the Winter Olympics.
Especially this month, a large-scale public test was conducted targeting 50,000 citizens in Shenzhen, Guangdong Province, China.
On the other hand, since 2017, China has strictly prohibited the issuance and circulation of private cryptocurrencies such as Bitcoin.
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