Chinese law enforcement shut down a money laundering operation that used digital yuan. The country has also added more provinces to its CBDC testing program.
Authorities in China have put a stop to a money laundering operation worth 200 million renminbi that made use of its central bank digital currency (CBDC). The operation took place in the Fujian district of the country, local media outlets reported, after law enforcement discovered a clue in August this year.
Once they realized that there appeared to be a money laundering operation going on, the city’s various bodies set up a joint task force to deal with the matter. The operation was led by Lai Moumou and Zhang Moumou, and they reportedly conducted a variety of criminal activities using the CBDC. The report reads,
“The criminal gang headed by Lai Moumou and Zhang Moumou is suspected of using digital RMB, digital RMB accounts and virtual currency to provide illegal fund settlement services for overseas gambling, electronic fraud and other criminal activities. The amount of money is huge, and there are many people involved in the case, which are distributed in 13 provinces across the country.”
China adds four new provinces to CBDC testing
China’s digital yuan has become an increasingly popular means of payment in the country, with numerous provinces seeing access to it over the past two years. Most recently, four additional regions were added to the program — Guangdong, Jiangsu, Hebei, and Sichuan.
The addition of more regions brings the CBDC closer to a full-scale launch. China has been eager to test the technology, and it has already seen successful experiments at major events.
Digital yuan being closely watched by other countries
As the digital yuan has grown increasingly popular within China, other countries have begun to examine their own CBDC efforts more closely. An Australian Liberal senator introduced a bill recently to regulate the crypto market, and this also mentioned disclosure requirements for foreign CBDC usage in the country.
Australia itself is working on its own CBDC, as is South Korea, India, and Sweden. Nineteen of the G20 nations are exploring the asset, and 16 of them are in the development or pilot stage.
These countries do not want to be left behind in the technological race, and there are some concerns that a CBDC could diminish the strength of the dollar. Still, it remains to be seen whether a digital yuan can help China break out of that rut.
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