The Central Bank of China believes that government agencies should strengthen oversight of the illegal movement of digital assets.
Crypto transaction monitoring system
In China, as part of strengthening the regulation of digital assets, a system for monitoring transactions in cryptocurrencies will be established. Gou Wenjun, director of central bank’s Anti-Money Laundering Monitoring and Analysis Center, came up with the appropriate initiative. In his view, government agencies need to strengthen surveillance of the illegal circulation of digital assets because of the threats that cryptocurrencies pose to yuan.
Wenjun noted that a cryptotransaction monitoring system based on artificial intelligence and other advanced technologies should be developed to enable authorities to identify the senders and recipients of digital assets.
At the end of September, the People’s Bank of China imposed a total ban on cryptocurrency transactions. The use of digital assets in the country now amounts to illegal financial activity. Crypto-exchange services to the people of China are prohibited.
Tough measures against cryptocurrencies began to be introduced in China at the end of May this year, following a call by Liu Hea, Deputy Chairman of the State Council of the People’s Republic of China, to tighten regulation of digital assets.
State Exchange for Digital Assets
China will soon have a government-backed digital asset exchange, but there will be no room for cryptocurrencies. In fact, the platform will pursue the goal of promoting the digital yuan.
The creation of infrastructure for trading digital assets is also part of the program for the development of financial services in the capital, in line with the state State Council. Although the details did not include details on how to set up the exchange, the board asked for e-CNY testing and called on the bank to set up an operating company for the CBDC.
China started working on the creation of the digital yuan as early as 2014, and in this race it is ahead of most large economies. Full implementation of the CBDC is expected during the Winter Olympics next year, which highlights the rush with which China is promoting coins.
To date, the digital yuan has been used in transactions worth nearly $ 10 billion. According to a spokesman for the People’s Bank of China in October, 140 million people have already installed a wallet for the Chinese CBDC.