The central bank of China has put forward a new version of a long-awaited banking law that clarifies the future regulation of the digital yuan in legal terms.
The People’s Bank will be accepting public comments for the proposed draft until November 23, as announced by a statement, issued by the bank this Friday.
The proposed draft recognizes the existence of the renminbi (the official name used for the yuan) in both physical and virtual form. Essentially, the new version of the law clears the way for the digital yuan to be the only token in China, pegged to the yuan.
“In order to prevent risks with the digital currency, no other legal entity or private individuals can issue or distribute tokens usable to replace the circulation of the Renminbi,” reads Article 22 section 3 of the proposed legislature.
The current draft will significantly affect many crypto-related businesses in the country since many investors in China use stablecoins in crypto-to-crypto trading operations. Tether, which is one of the leading crypto companies in the world, also has a yuan stablecoin.
