By
Tolu Ajiboye
May 6th, 2024
Qian was appointed the first head of the central bank’s digital currency research institute in 2017.
Yao Qian, the mastermind behind the development of China’s Central Bank Digital Currency (CBDC), has found himself under the watchful eyes of the Chinese government, as reports reveal that he is under investigation. The investigation adds to ongoing probes on some key players in the crypto community and raises concerns about the potential adoption of CBDC in China.
Charges against Yao Qian
According to reports, the Chinese anti-corruption authorities have accused Yao Qian of violating laws and regulations. At the moment, details about the investigation remain unknown. Born in 1970, Qian is a former director at the central bank’s digital currency research institute and currently serves as the Director of the Information Center of the China Securities Regulatory Commission.
Qian was appointed the first head of the central bank’s digital currency research institute in 2017. Subsequently, he moved from the central bank to the country’s securities regulator the following year. He actively supports blockchain technology and even published a book in 2022 covering topics such as NFT, DeFi, DAO, and X-to-earn.
The Director boldly predicted that Web 3.0 will play a major role in China’s future internet infrastructure. He, therefore, advised that more attention and research must be placed on its development.
Qian criticized the limiting abilities of the Web 2.0 ecosystem. He emphasized that users are indulged to participate in social activities or on the internet by the large tech firms, of which access can still be revoked.
Qian is also an advocate of the Chinese CBDC known as digital yuan. Three years ago, the Chinese government was accused of using the digital yuan as a monitoring tool. In defense of the digital coin, Qian stated that it was created to compete with private-owned payment platforms such as Alipay. He added that central banks are under obligation to develop legalized fiat currency due to the growing digitization in the economy.
The Chinese CBDC has been under development for some time, with an intense attempt to establish its use. Similar to some other countries working on developing their digital currencies, China has conducted multiple tests of its CBDC in different parts of the country.
In 2021, the government banned citizens from engaging in crypto-related activities, including trading and mining of cryptocurrencies in the country. However, reports reveal that the Chinese government introduced about 200 CBDC activities across the country last year. The report highlights increased enthusiasm toward digital currency in China, noting that some local governments used the digital yuan to subsidize businesses to improve recovery.
Stablecoins as a Proposed Alternative to Chinese CBDC
Amid recent developments and tests on China’s CBDC, Jeremy Allaire, CEO of stablecoin issuer Circle Financial, has urged authorities to consider yuan-backed stablecoins as a viable alternative.
Allaire claims stablecoins have more benefits for China’s international trade and commerce. He noted that if the Chinese government aims to see the yuan being widely used globally, stablecoins could be the path to achieve that goal.