Authorities in China’s Xiongan New District notified the public of a rampant digital yuan fraud. The authorities mentioned the ongoing fraud’s details in a notice signed by the local government and the Central Bank branch.
It seems that the government is having trouble with the digital yuan and the offshore RMB coin, whose release was covered a while ago by TheCoinRise. The rising number of money laundering and fraud cases using China’s pioneering Central Bank Digital Current or digital yuan is keeping authorities under pressure.
Increasing instances of digital yuan frauds
In early November, China reported its first money-laundering case wherein 11 people were arrested for scamming a citizen in Xinmi. As per TheCoinRise’s earlier data, the group was accused of laundering around 200,00 yuan ($31,000) for Cambodian gangs.
While the government plans to release the digital yuan on a full scale in Winter Olympics, which is just around the corner, it seems that the new form of payment is not ready yet. The local authorities had arrested a woman, finding her guilty of defrauding over 300,000 ($47,000).
Furthermore, it seems that this is just a start. The rising cases in the nation seem to be ironic as the authorities continue their focus on cryptocurrency mining. The local authorities have also busted many mining rigs in the nation.
China is currently promoting the usage of the digital yuan in an aggravated manner. As per TheCoinrise’s post, the authorities are forcing McDonald’s China to accept digital yuan as a payment service in the upcoming Winer Olympics 2022. The PBoC even revealed a machine that is capable of converting any fiat currency into the CBDC.
Meanwhile, other countries are also considering cryptocurrency adoption. G7 leaders recently gathered to discuss the issuance of CBDCs and policies related to them. The UK and other members are also looking to release CBDCs.