China is inching closer to the launch of its own sovereign digital currency by giving it a legal foundation in an upcoming law revision, while the central bank is also addressing problems that emerged in pilot tests for the digital yuan, reported the South China Morning Post.
The People’s Bank of China published a draft law on Friday that would give legal status to the Digital Currency Electronic Payment system, and for the first time the digital yuan has been included and defined as part of the country’s sovereign fiat currency, said the SCMP.
The draft law would also forbid any party from making or issuing yuan-backed digital tokens to replace the renminbi in the market.
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