The former governor of the People’s Bank of China has said that China must take measures to avoid CBDC misuse

China’s former central bank governor Zhou Xiaochuan warned on Thursday in Beijing that the country must pay particular attention to security throughout the development and testing of the CBDC.

Former Chinese central bank governor Zhou Xiaochuan has stressed that safeguarding the currency, keeping expenses low, and preventing misuse are all crucial as China creates its own central bank digital money.

Zhou, speaking at a symposium in Beijing on Thursday, emphasized the importance of currency and financial stability. “Misuse is becoming cheaper as technology prices go down and as systems get more user-friendly”, he said.

Zhou elaborated, saying, “When I mention preventing abuse, it includes efforts to combat money laundering and arms trading.” “Many trades in weapons during wars and drugs like fentanyl are made easier by using cryptocurrencies and stablecoins as payment. This is an area that needs special attention for prevention.”

In January 2022, the People’s Bank of China released a pilot app for using CBDC, also known as e-CNY, the digital currency being tested by the central bank. State media outlet Xinhua reported in April that the PBOC has extended its digital yuan experiment to at least 26 sites in 17 provincial-level cities and regions, including Beijing, Shanghai, Shenzhen, and Suzhou.

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