A proposal from a National People's Congress (NPC) deputy to revise the People's Bank of China Law: to clarify the legal tender status of the digital yuan.

PANews reported on March 14th, citing Caixin, that Fu Xiguo, a National People's Congress (NPC) deputy and former head of the Liaoning branch of the People's Bank of China (PBOC), submitted a proposal to expedite the revision and promulgation of the "Law of the People's Republic of China on the People's Bank of China." The proposal argues that the current lack of clear legal regulations for the digital yuan (RMB) creates a legal vacuum regarding its issuance, circulation, and risk prevention. This leaves the central bank without a legal basis to effectively safeguard the security of the digital yuan's circulation and the rights of financial consumers. The revised "Law of the People's Bank of China" should clarify the legal tender status of the digital yuan and define the central bank's core responsibilities as the issuer. Furthermore, the new law should include acts such as counterfeiting and altering digital yuan within its scope, clearly defining corresponding legal liabilities and penalties to ensure the security of the digital yuan's circulation.