Former Head of China’s Digital Yuan Project Under Investigation for Violations

China’s former head of the digital yuan initiative is reportedly under investigation for “serious violations of discipline and law.” Yao Qian, the former lead developer of China’s central bank digital currency (CBDC) initiative, is currently undergoing disciplinary review by authorities as per a report from China’s national television CCTV.

Qian’s case is being handled by the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at the China Securities Regulatory Commission. Additionally, an investigation has been initiated by the Supervisory Committee of Shanwei City. However, specific details regarding the allegations against Qian have not been disclosed at this time.

Yao Qian played a crucial role in establishing the research lab for China’s central bank digital currency project from its inception until he left the People’s Bank of China in 2018. He later joined the China Securities Regulatory Commission in late 2019.

Former People’s Bank of China Governor Zhou Xiaochuan, who led the institution for 16 years until 2018, recently highlighted China’s progress in its digital yuan pilot project. Xiaochuan mentioned at a conference in Hong Kong that China is nearing the conclusion of its multi-year digital yuan pilot, indicating that the “final stage is not very far away.”

Xiaochuan emphasized China’s advancements in digitizing approximately 90% of retail payments and the significant business opportunities in cross-border payments. He encouraged central bankers to further explore this avenue.

US policymakers have introduced a bill targeting China’s digital yuan, showing the increasing global interest in the development of digital currencies.