China’s PBOC bans token emissions

28. Oktober 2020

The People’s Bank of China (PBOC), is consulting to ban the issue of tokens, except for its CBDC. This will take place until 23/11.

On October 23rd, the People’s Bank of China (PBOC) issued a statement, informing that no company or individual can produce and sell cryptomoney. As a result, it will ban the issue of tokens, except for its CBDC.

By the way, the People’s Bank of China (PBOC) is the central bank of the People’s Republic of China and is located in Beijing. Since July 2017, the PBOC has had the largest holdings of financial assets of any central bank in the world.

China’s PBOC ready to ban tokens

The PBOC wants to ban the issuing and sale of tokens, as they represent competition for the digital yuan (DCEP).

Undoubtedly, since China announced the creation of a digital currency for the Yuan, the objective was clear. The nation seeks to break the monopoly of the US dollar in the world economy.

In this regard, it plans several sanctions for entities seeking to replace the yuan.

Therefore, the Central Bank of China is accepting public comments on a bill that seeks to pave the way for the digital yuan.

Press release from the People’s Bank

The communiqué indicates that the PBOC has launched a public consultation. Specifically, on the Law of the People’s Republic of China on the People’s Bank of China.

According to the statement, this consultation is available for anyone to comment on and approve this new law.

In fact, a small part of the document states:

„No unit or individual can create or resell tokens, coupons and digital tokens. To replace the circulation of the Chinese Yuan in the market“.

In addition, the bill prescribes a fine of five times the proceeds from the sale of such tokens.

If approved, issuers of these tokens would have to stop their activities. They would even have to lose all profits made from the sale of cryptomoney.

Colin Wu, the Chinese crypto-reporter, then said: „The People’s Bank of China issued a draft of legal comments. It clearly stipulates that no unit or individual can produce and sell tokens, coupons and digital tokens, to replace the yuan“.

The public consultation

By the way, the public can provide feedback through the following channels and methods:

  1. Send your comments to: tfszqyj@pbc.gov.cn by email. In the subject line of the email, please indicate the words „Request for Comments on the People’s Bank of China Law“.
  2. Send your comments by letter to: Articles and Law Department of the People’s Bank of China, No. 32 Chengfang Street, Xicheng District, Beijing (Postal Code: 100800), and mark the words „Request for Comments on the People’s Bank of China Law“ on the envelope.
  3. Fax comments to: 010-66072754.
  4. Of course, the deadline for comments is 23 November 2020.

So, is PBOC preparing for the launch of its central bank’s digital currency (CBDC)? Leave your opinion in the comment box.