Fu Xiguo, deputy to the National People\’s Congress: prevent the risk of virtual currency and clarify the legal responsibility for making and selling digital tokens

It is reported that Fu Xiguo, a deputy to the National People’s Congress and president of the People’s Bank of China Shenyang Branch, proposed to submit a proposal to amend the Law of the People’s Republic of China on the People’s Bank of China at this year’s two sessions. Fu Xiguo believes that the management responsibilities of RMB should be improved, and the expression and production methods of legal RMB should be redefined in the legal provisions, giving digital RMB the same legal status as physical RMB; According to the characteristics of digital RMB, the issuance mode, circulation mode, supervision mode and other contents of digital RMB shall be comprehensively and in detail to prevent the risk of virtual currency and clarify the legal responsibility for making and selling digital tokens.

Interpretation of this information:

The message reports that a deputy to the National People’s Congress and president of the People’s Bank of China Shenyang Branch, Fu Xiguo, has proposed a proposal to amend the Law of the People’s Republic of China on the People’s Bank of China. The proposal aims to improve the management responsibilities of RMB and redefine the expression and production methods of legal RMB in the legal provisions, giving digital RMB the same legal status as physical RMB.

Fu Xiguo’s proposal recognizes the increasing importance of digital currencies and their potential impact on the Chinese economy. It understands that virtual currencies pose risks that need to be prevented, and legal responsibility for making and selling digital tokens must be clarified.

To achieve these goals, the proposal suggests that the issuance mode, circulation mode, and supervision mode of digital RMB be comprehensively and in detail defined. By doing so, it hopes to prevent the risk of virtual currency and clarify the legal responsibility for making and selling digital tokens.

The use of digital RMB has the potential to revolutionize the way transactions are carried out in China. It can increase the efficiency and speed of transactions and could help reduce the cost of making transactions. Additionally, digital currency could bring many people into the financial system, including those who previously could not access banking services.

However, virtual currencies also come with risks. They can be used for illegal activities and can be subject to market volatility. Thus, it is essential to regulate digital currencies carefully, as suggested in Fu Xiguo’s proposal.

In summary, the proposal demonstrates the Chinese government’s recognition of the potential of digital currencies in the economy. It acknowledges the need to carefully manage digital currencies and ensure that they are regulated appropriately to protect the economy and citizens. With its comprehensive and detailed approach, Fu Xiguo’s proposal could help ensure that digital currencies fulfill their potential without posing undue risks.