- Yao Qian, former head of China‘s CBDC research, has been expelled from the Chinese Communist Party amid corruption allegations
- Allegations include accepting cryptocurrency, property, and other gifts while supporting specific technology providers for personal gain
- Qian served as the first director of PBOC’s Digital Currency Research Institute in 2017 before moving to the Securities Regulatory Commission
- China’s digital yuan has processed nearly $982 billion in transactions by June 2024
- The digital yuan has expanded beyond mainland China, including Hong Kong retail payments and international trade settlements
Former Chinese CBDC Chief Faces Corruption Charges
Yao Qian, who pioneered China’s central bank digital currency (CBDC) program, has been removed from his government position and expelled from the Chinese Communist Party following corruption allegations.
State media reports indicate Qian misused his authority in policy recommendation, formulation, and execution.
The investigation revealed Qian allegedly supported specific technology service providers for personal benefit, though specific details remain undisclosed.
Prosecutors claim Qian accepted multiple forms of bribes, including cryptocurrency, property, premium liquor, and unauthorized loans.
While the exact value of the alleged bribes remains undisclosed, officials described the amount as “very huge.”
Background and Career
In 2017, Qian became the inaugural director of the Digital Currency Research Institute at the People’s Bank of China (PBOC).
After departing from the central bank in 2018, Qian took a position at the China Securities Regulatory Commission.
During his tenure, Qian made notable public statements about CBDCs, including a suggestion at the 2021 International Financial Forum that CBDCs could potentially operate on Ethereum and incorporate smart contracts.
Digital Yuan Progress
Despite the controversy surrounding its former research chief, China’s digital yuan continues to expand its reach.
According to Lu Lei, deputy governor of China’s central bank, the digital yuan processed approximately $982 billion in transactions through June 2024.
Reuters reports that Hong Kong has integrated the digital yuan into its retail payment system through mobile wallets.
The CBDC achieved a milestone in November 2023 when it was used to settle its first cross-border crude oil transaction with Petro China.
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