The People's Bank of China (PBOC) has submitted a revised draft of its governing law to the Standing Committee of the 14th National People's Congress, aiming to clarify the legal status of the digital renminbi. This draft, presented on June 23, 2026, marks the first deliberation of the proposed changes. Unlike the 2020 draft, which only acknowledged the existence of digital and physical forms of the renminbi, the new draft explicitly addresses the legal framework for the digital currency.
Additionally, the draft reinforces prohibitions against the production or sale of token vouchers or digital tokens intended to replace the renminbi in market circulation. The PBOC is empowered to halt such activities, destroy illegal tokens, confiscate profits, and levy fines up to five times the illegal amount, underscoring China's stringent stance on maintaining monetary sovereignty.
China's PBOC Law Draft Seeks to Define Digital RMB's Legal Status
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