China proposes global rules to regulate CBDCs

Among major countries, China is leading the development of CBDC and proposing to establish global regulatory rules for CBDC supervision.

The director of the Digital Currency Research Institute of the People’s Bank of China (PBoC) is proposing a set of global rules to monitor central bank digital currencies (CBDCs).

According to Reuters, Mu elaborated on the recommendations while speaking at a Bank for International Settlements (BIS) seminar on Thursday, explaining that the flow of funds in a CBDC should be “synchronized” to help regulators “monitor whether transactions are compliant.”
“Interoperability should be achieved between CBDC systems in different jurisdictions,” he proposed.
China is ahead of major countries in developing and piloting a CBDC, but the digital yuan project has raised concerns about how much insight it will provide authorities into users’ financial data and behavior.
Mu Changchun said at the BIS seminar that the People's Bank of China has shared its recommendations with other central banks and monetary authorities. (CoinDesk)