The Chinese Communist Party has expelled Yao Qian, who previously led China's central bank digital currency (CBDC) research, following serious corruption allegations.
Yao, who served as the first director of the People's Bank of China's Digital Currency Research Institute in 2017, faces accusations of accepting bribes in various forms, including cryptocurrency, property, premium liquor, and unauthorized loans. While authorities have not disclosed specific amounts, they described the scale of alleged bribes as "very huge."
The investigation revealed that Yao allegedly abused his position of power during policy development and implementation. State media reports indicate he provided preferential treatment to certain technology service providers in exchange for personal benefits.
After his role at the Digital Currency Research Institute, Yao moved to the Securities Regulatory Commission. During his tenure working on the digital yuan project, he made notable public statements about CBDCs, including proposing that they could potentially operate on the Ethereum network and incorporate smart contract functionality.
Despite the scandal involving its former research chief, China's digital yuan program continues to advance. Recent data from Lu Lei, deputy governor of China's central bank, shows the digital currency has facilitated transactions worth approximately $982 billion through June 2024.
The digital yuan recently achieved a major milestone by completing its first cross-border crude oil transaction with Petro China in November 2023. Additionally, Hong Kong has integrated the Chinese CBDC into its retail payment infrastructure, allowing residents to use digital yuan through mobile wallet applications.
The case highlights ongoing anti-corruption efforts within China's financial sector while demonstrating that the digital yuan project maintains momentum regardless of leadership changes.