Fu Xiguo, a deputy of the National People's Congress and former head of the Liaoning branch of the People's Bank of China, has proposed a revision to the "Law of the People's Republic of China on the People's Bank of China" to clarify the legal tender status of the digital yuan. The proposal highlights the absence of clear legal regulations for the digital yuan, which creates a legal vacuum concerning its issuance, circulation, and risk prevention.
Fu's proposal emphasizes the need for the revised law to define the central bank's responsibilities as the issuer of the digital yuan and to include provisions against counterfeiting and altering the digital currency. This would establish legal liabilities and penalties to ensure the security of the digital yuan's circulation and protect financial consumers' rights.
NPC Deputy Proposes Legal Framework for Digital Yuan in China
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