Chinese Central Bank Issues Warning over Use of Statutory Digital Currency as Cover for Fraud

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The People’s Bank of China (PBOC) has issued an official warning over fraudulent schemes that make false claims in relation to the central bank digital currency (CBDC) or digital currency/electronic payments (DC/EP) system.

According to a statement from PBOC certain Chinese financial institutions have recently engaged in transactions of products using the terms “DC/EP” or “DCEP,” as part of efforts to dupe investors into believing that China’s proposed central bank digital currency is involved.

PBOC reiterated a warning it issued last month, in which it officially announced that it had “not released a statutory digital currency or authorised any assets transaction platforms to engage in transactions [of it].”

On 13 November PBOC issued the “Announcement Concerning the Fraudulent Use of the Name of the People’s Bank of China to Issue or Promote Statutory Digital Currency” (关于毛用人民银行名义发行或推广法定数字货币情况的公告).

“Online so-called statutory digital currency issuance, as well as promotion of ‘DC/EP’ or ‘DCEP’ by individual institutions making false use of PBOC’s name could involve fraud,” PBOC said in the announcement.

“The general public is asked to heighten its risk awareness, not be credulous, and prevent losses.”

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