tl;dr
Yao Qian, the former head of China's central bank digital currency (CBDC) research project, has been expelled from the Chinese Communist Party and removed from his government position due to allegations of corruption. He is accused of abusing his authority, accepting bribes, and engaging in conflict...
Former head of China's digital currency project expelled from Chinese Communist Party and government position over corruption allegations. Yao Qian, first head of Digital Currency Research Institute at People's Bank of China, under investigation since April 2024, facing prosecution. China's digital yuan CBDC sees increased real-world use, with over $982 billion in transactions by June 2024 and expanding cross-border payments.
Yao Qian, the former head of China's central bank digital currency (CBDC) research project, has been expelled from the Chinese Communist Party and removed from his government position due to allegations of corruption. He is accused of abusing his authority, accepting bribes, and engaging in conflicts of interest. Qian had been instrumental in developing China's digital yuan and was under investigation since April 2024. The digital yuan has seen significant real-world use cases and is gradually being rolled out, including for cross-border payments and in jurisdictions outside mainland China.
The former head of China's central bank digital currency (CBDC) research project, Yao Qian, has been expelled from the Chinese Communist Party and removed from his government position, following allegations of corruption. According to reports in state-owned local media, Qian is accused of having abused "the right to recommend, formulate, and execute policies" and "abandoned the responsibilities of science and technology supervision" following a disciplinary review. It is alleged that he accepted cryptocurrency, property, premium liquor, and dinners, and illegally borrowed money while in his position. The exact scale of the bribes, or specific transactions, was not disclosed in the report, other than it was "very huge."
Yao Qian's case has been referred to local authorities for prosecution. The executive had been under investigation since April 2024, according to local reports.
WHO IS YAO QIAN? Qian became the first head of the Digital Currency Research Institute at the People's Bank of China (PBOC) in 2017, where he worked on developing the Digital Yuan. Qian left China's Central Bank in 2018 and has been serving at the China Securities Regulatory Commission since then. Qian had been outspoken in the past when it came to expressing his personal opinions about CBDCs, suggesting that they could one day run on Ethereum (ETH) and incorporate smart contract functionality at the International Financial Forum (IFF) held in Beijing in 2021.
CHINA'S DIGITAL YUAN The news comes as China's own digital yuan CBDC, which first started limited testing in 2019, attracts more real-world use cases. Lu Lei, a deputy governor at China's central bank, told media in September that almost $982 billion in transactions had been carried out using China's digital yuan by the end of June 2024. The digital yuan, which is undergoing a gradual rollout, is also now being used in jurisdictions outside mainland China. Hong Kong now allows the CBDC to be used for payments in the city's retailers, using a mobile wallet, according to Reuters. The CBDC has also begun public use for cross-border payments. In November 2023, it was reported that the digital yuan was used to settle a cross-border crude oil transaction for the first time, in an international trade involving PetroChina.