The People’s Bank of China regards the digital yuan as a legal tender that must be accepted nationwide. Deputy Governor Fan Yifei wrote about this in a column for Financial News.
In his words, the digital yuan legally complements fiat currency. It “primarily positions itself as an M0 asset”, that is, as part of cash.
“Therefore the digital yuan must comply with the laws and rules governing monetary management,” said Yifei.
In the article, the PBOC spokesman stressed that the asset should be accepted nationwide.
“No company or individual may refuse to accept the digital yuan if all conditions are met,” the article says.
Earlier, the Chinese authorities announced an expansion of testing of the national digital payments system. The experiment was planned to target large commercial transactions.
In August, the media reported that the People’s Bank planned to issue the national digital currency into circulation by February 2022.
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