China will clear the way for its central bank to be the lone issuer of a digital yuan, banning other digital currencies pegged to the currency.
The People’s Bank of China (PBoC) drafted the proposed law last Friday to define physical and digital forms of its currency, according to a statement, and it will seek now public feedback until November 23, according to a statement.
«To prevent risks associated with virtual currency, any other legal entity or individuals can not issue or sell tokens to replace the circulation of [the yuan],» the statement said.
Stablecoins
Stablecoin is a type of cryptocurrency that focuses on providing a pegging mechanism, usually to a popular fiat currency.
Tether, for example, is one of the largest crypto firms with a focus on stablecoins which includes one pegged to the yuan.
China’s digital yuan continues to make progress towards a launch, having recently completed its first public trial in Shenzhen which reportedly received mixed feedback.
