BREAKING: People’s Bank of China Cracks Down on Stablecoins

The People’s Bank of China (PBoC) is asking for public feedback to review the ongoing central banking law, which intends to authorize and legalize digital yuan but ban the distribution of yuan-pegged digital tokens. The central bank issued a notice on Friday, 23 October 2020.

PBoC to ban the circulation of yuan-pegged digital tokens?

According to the published notice, the PBoc is taking public feedback for a review draft until November 23. The notice states that:

The People’s Bank of China has actively promoted the revision of the “People’s Bank of China Law of the People’s Republic of China” and drafted the law which is now open for public opinion. The public can give feedback through the following channels and methods:

1. Send comments to: tfszqyj@pbc.gov.cn by email. The subject of the email should indicate the words “Soliciting Comments on the People’s Bank of China Law.

2. Mail your opinions by letter to: Articles and Laws Department of the People’s Bank of China, No. 32 Chengfang Street, Xicheng District, Beijing (Postal Code: 100800), and please indicate the words “Soliciting Comments on the People’s Bank of China Law” on the envelope.

Breaking: The People's Bank of China issued a draft of legal comments, clearly stipulating that no unit or individual may produce and sell tokens, coupons and digital tokens to replace CNY in circulation in the market. pic.twitter.com/rH7i4w4mJO

The law also specifies that for distributing virtual currency tokens, a penalty of 5 times the amount of illicit income will be inflicted. The suggested improvement of the law seems to be covering a legal pathway for a more all-inclusive rollout of China’s long-awaited central bank digital yuan drive.