The Chinese financial regulator has submitted for public discussion amendments to the Law on the People's Bank. They provide for the legalization of the digital yuan and prohibit the issuance of tokens tied to it.
Excerpts from the bill were cited by journalist Colin Wu. This could be the first time digital currencies are mentioned in China's official laws, he said.
Wu said that the document prohibits legal entities and individuals from issuing and trading tokens instead of the digital yuan in circulation.
The regulator proposes to punish violators with a fine of five times the income received, termination of activities and confiscation of profits from the issuance and sale of RMB-backed digital tokens.
Also, one of the amendments proposes to legalize the national currency in digital form.
Earlier, the regulator called for accelerating the pace of research and development of the central bank's digital currency (CBDC), as well as making sure that it is controllable and safe.
As a reminder, the Chinese authorities expected to be the first to issue CBDC. In their opinion, winning this race will strengthen the yuan's position in the global market, breaking the dollar's dominance.