People’s Bank of China warns of counterfeit wallets for the digital yuan

Although the digital yuan remains in the pilot phase, counterfeit wallets have already appeared for it. Mu Changchun, director of the CBDC Institute at the People’s Bank of China, said this, according to 8btc.

“We have already discovered counterfeit digital wallets for the yuan on the market. As with paper banknotes, the People’s Bank of China still faces the problem of counterfeits and measures to combat them,” he said during a speech at a financial summit in Shanghai.

According to him, the problem needs to be solved before it becomes too large.

Counterfeiting measures are extremely costly; with digital currencies, costs could rise even higher, the central bank official said.

To reduce the cost of anti-counterfeiting, the central bank should coordinate work with companies and government agencies on the digital wallet to make it easily identifiable, Mu Changchun said. Bringing in partners’ features into the solution will help create a more versatile and counterfeit-resistant financial product, he believes.

Mu Changchun added that the central bank will not use administrative resources to promote the digital currency. The regulator plans a “market-oriented” approach, whereby the volume of CBDC issuance will be determined by demand.

“As long as people need the yuan, we will continue to issue them. In my view, this pair will coexist for a very long time,” he stressed.

Following the completion of the pilot project with the first distribution of the digital yuan among the population, it emerged that in the wallet for it will provide partial anonymity of transactions.

Earlier Mu Changchun stated his readiness to test the new option.

For details on how China rose to the forefront of CBDC issuance, see ForkLog:

How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)

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