The Chinese government plans to regulate the digital yuan through a combination of central bank supervision and state-backed technical infrastructure. Here are some of the key regulatory measures being put in place:
Central Bank Supervision: The People's Bank of China (PBOC) is responsible for issuing and regulating the digital yuan, and will oversee its development and implementation.
Technical Infrastructure: The digital yuan is being developed and implemented with the support of the state, including the use of state-backed technical infrastructure and secure communication networks.
Data Privacy and Security: The PBOC is implementing strong privacy and security measures to protect the digital yuan and its users, including encryption and secure storage of user data.
Anti-Money Laundering and Counter-Terrorism Financing: The digital yuan is subject to anti-money laundering and counter-terrorism financing regulations, and the PBOC is working to ensure that these regulations are effectively enforced.
Cross-Border Transactions: The PBOC is working to ensure that the digital yuan is compliant with cross-border transaction regulations, and is exploring international partnerships to facilitate the use of the digital yuan in global transactions.
Licensing Requirements: The PBOC may impose licensing requirements on entities involved in the issuance, circulation, and use of the digital yuan, such as digital wallets, exchanges, and payment providers.
These measures aim to ensure the stability, security, and legal compliance of the digital yuan, while fostering its growth and widespread adoption.
