The new crypto tax regime in India has finally gone into effect, and it appears to be affecting the trading volume in the country.

Media reports from the country suggest that trading volumes on crypto exchanges have dropped by an average of 15% within the first three days of the month.

Not only that, but crypto exchanges operating within the country have also seen their domain traffic drop by 40%.

India crypto exchanges trading volume suffers

Co-founder of Crypto India, Aditya Singh, confirmed these reports on Twitter. He posted graphs showing a significant dip in the trading volume of 4 of India’s top exchanges.

Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April.

Aditya Singh (@CryptooAdy) April 2, 2022

The trading volume of WazirX, the country’s biggest exchange, dropped from $208 million to less than $100 million before the month even started.

The drop in trading volume doesn’t come as a surprise, given the hefty tax imposed on crypto. Indians will have to part with 30% of their profits with the new tax law.

In addition, another tax will come into effect next month, which will deduct 1% on every crypto transaction from the source.

Already, crypto stakeholders are predicting that the 1% tax on every transaction will affect liquidity within the sector. They claim that this tax will limit the number of trades as investors who are high-frequency traders will cut down on their trades.

The rule also prevents tax write-offs for losses made on trades which means investors would be more likely to run at a loss.

Stakeholders lambast the new tax regime

Many predict that such a tax regime could push many crypto traders and companies to leave the country.

According to Nischal Shetty, CEO of WazirX, the 1% tax-deductible at source (TDS) is “the worst-case scenario for the industry.”

The executive director of policy at CoinDCX, Manhar Garegrat, also stated that “There will be no liquidity left in the markets” if TDS comes into effect.

“Trades placed by buyers will not get executed as efficiently as they do today, and such inefficiency will eventually dwindle the whole ecosystem,” he added.

Major exchanges want to invest in India

While crypto stakeholders are worried about an exodus, major exchanges like Coinbase and FTX are showing interest in investing in the crypto space of the Asian country.

Earlier today, Coinbase revealed that it plans to invest $1 million into crypto and Web3 projects initiated in the country.

Another report revealed that FTX could be set to invest in India’s Mobile Premier League (MPL), which intends to launch NFTs and a play to earn based game before the end of the year.

This shows that despite the government’s best effort at making the industry unattractive to investors, some stakeholders still believe there is ample opportunity for them in the country.

The new crypto tax regime in India has finally gone into effect, and it appears to be affecting the trading volume in the country.

Media reports from the country suggest that trading volumes on crypto exchanges have dropped by an average of 15% within the first three days of the month.

Not only that, but crypto exchanges operating within the country have also seen their domain traffic drop by 40%.

India crypto exchanges trading volume suffers

Co-founder of Crypto India, Aditya Singh, confirmed these reports on Twitter. He posted graphs showing a significant dip in the trading volume of 4 of India’s top exchanges.

Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April.

Aditya Singh (@CryptooAdy) April 2, 2022

The trading volume of WazirX, the country’s biggest exchange, dropped from $208 million to less than $100 million before the month even started.

The drop in trading volume doesn’t come as a surprise, given the hefty tax imposed on crypto. Indians will have to part with 30% of their profits with the new tax law.

In addition, another tax will come into effect next month, which will deduct 1% on every crypto transaction from the source.

Already, crypto stakeholders are predicting that the 1% tax on every transaction will affect liquidity within the sector. They claim that this tax will limit the number of trades as investors who are high-frequency traders will cut down on their trades.

The rule also prevents tax write-offs for losses made on trades which means investors would be more likely to run at a loss.

Stakeholders lambast the new tax regime

Many predict that such a tax regime could push many crypto traders and companies to leave the country.

According to Nischal Shetty, CEO of WazirX, the 1% tax-deductible at source (TDS) is “the worst-case scenario for the industry.”

The executive director of policy at CoinDCX, Manhar Garegrat, also stated that “There will be no liquidity left in the markets” if TDS comes into effect.

“Trades placed by buyers will not get executed as efficiently as they do today, and such inefficiency will eventually dwindle the whole ecosystem,” he added.

Major exchanges want to invest in India

While crypto stakeholders are worried about an exodus, major exchanges like Coinbase and FTX are showing interest in investing in the crypto space of the Asian country.

Earlier today, Coinbase revealed that it plans to invest $1 million into crypto and Web3 projects initiated in the country.

Another report revealed that FTX could be set to invest in India’s Mobile Premier League (MPL), which intends to launch NFTs and a play to earn based game before the end of the year.

This shows that despite the government’s best effort at making the industry unattractive to investors, some stakeholders still believe there is ample opportunity for them in the country.

Singapore’s parliament has passed an omnibus bill that will expand the powers of its primary market watchdog and introduce tighter regulation for crypto companies in the country.

Passed on Tuesday, April 5th, the law is the government’s latest effort to tighten its grip over the booming crypto industry. Singapore’s lawmakers, however, maintain a crypto-friendly outlook and are set on continuing on a regulatory path that will make Singapore the capital of Asia’s blockchain and crypto industries.

Singapore’s market watchdog gains more control over the crypto industry

First introduced in February 2022, the Financial Markets and Services Bill was designed to bring digital token services in Singapore in line with new standards set by the Financial Action Task Force (FATF), an intergovernmental organization fighting money laundering.

The legislation will require virtual asset service providers—or cryptocurrency companies—which only do business overseas to be licensed. Companies headquartered in Singapore and not servicing customers in the state weren’t subject to anti-money laundering and terrorism financing laws.

Alvin Tan, Singapore’s state minister of trade, said this created a regulatory gap where such companies presented “reputational risks” for Singapore. He explained that overseas companies that offer crypto services in Singapore are subject to the country’s laws even though they aren’t physically operating in the country.

And while most parliamentarians welcomed the new bill, some raised concerns that it could lead to crypto service provers being “double regulated,” or subject to different legislation in different jurisdictions. The same parliamentarians also said that the bill does little to mitigate consumer risks due to the speculative nature of cryptocurrencies.

The Monetary Authority of Singapore (MAS), the country’s leading market watchdog, said that it would keep a close eye on the adoption of cryptocurrencies to determine whether further user protection measures are needed.

On the other hand, Tan maintains his position that laws don’t offer foolproof protection against investment losses, saying that consumer education and awareness remain the best weapons for fighting that kind of risk.

Nonetheless, the new bill gives MAS the power to impose harsher penalties if companies fail to maintain the security of their platforms. The bill sets the maximum penalty for a breach of security at $740,000, a significant increase from the current liabilities administered by MAS.

MAS will also have the power to issue prohibition orders against individuals deemed unfit to perform critical roles, activities, and functions in the financial and crypto industries.

“The financial penalty, coupled with the flexibility to impose additional supervisory actions strike a balanced approach, signals the importance of having robust technology risk management, without being overly excessive for smaller financial institutions,” Tan told The Business Times.

Singapore’s parliament has passed an omnibus bill that will expand the powers of its primary market watchdog and introduce tighter regulation for crypto companies in the country.

Passed on Tuesday, April 5th, the law is the government’s latest effort to tighten its grip over the booming crypto industry. Singapore’s lawmakers, however, maintain a crypto-friendly outlook and are set on continuing on a regulatory path that will make Singapore the capital of Asia’s blockchain and crypto industries.

Singapore’s market watchdog gains more control over the crypto industry

First introduced in February 2022, the Financial Markets and Services Bill was designed to bring digital token services in Singapore in line with new standards set by the Financial Action Task Force (FATF), an intergovernmental organization fighting money laundering.

The legislation will require virtual asset service providers—or cryptocurrency companies—which only do business overseas to be licensed. Companies headquartered in Singapore and not servicing customers in the state weren’t subject to anti-money laundering and terrorism financing laws.

Alvin Tan, Singapore’s state minister of trade, said this created a regulatory gap where such companies presented “reputational risks” for Singapore. He explained that overseas companies that offer crypto services in Singapore are subject to the country’s laws even though they aren’t physically operating in the country.

And while most parliamentarians welcomed the new bill, some raised concerns that it could lead to crypto service provers being “double regulated,” or subject to different legislation in different jurisdictions. The same parliamentarians also said that the bill does little to mitigate consumer risks due to the speculative nature of cryptocurrencies.

The Monetary Authority of Singapore (MAS), the country’s leading market watchdog, said that it would keep a close eye on the adoption of cryptocurrencies to determine whether further user protection measures are needed.

On the other hand, Tan maintains his position that laws don’t offer foolproof protection against investment losses, saying that consumer education and awareness remain the best weapons for fighting that kind of risk.

Nonetheless, the new bill gives MAS the power to impose harsher penalties if companies fail to maintain the security of their platforms. The bill sets the maximum penalty for a breach of security at $740,000, a significant increase from the current liabilities administered by MAS.

MAS will also have the power to issue prohibition orders against individuals deemed unfit to perform critical roles, activities, and functions in the financial and crypto industries.

“The financial penalty, coupled with the flexibility to impose additional supervisory actions strike a balanced approach, signals the importance of having robust technology risk management, without being overly excessive for smaller financial institutions,” Tan told The Business Times.

Scammers have reportedly found a new way to compromise users’ Discord accounts — including those on servers related to cryptocurrencies and non fungible-tokens (NFTs) — by hijacking QR codes used for logging in.

According to pseudonymous crypto enthusiast Serpent, malicious actors — disguised as Discord’s verified bot called Wick—are now reaching out to users to offer a collaboration, potential employment, or some other enticing opportunities. But there’s a catch — to continue the discussion, scammers ask users to verify via a QR code.

New NFT discord scam going around, this time using QR codes.

Pretty terrible scam, but this is how it works 🧵👇

Serpent (@SerpentAU) April 4, 2022

This is because Discord has an option to log in using a special QR, bypassing two-factor authentication. In reality, however, “scammers are using Chrome drivers to open the login page, get the QR code image, then send it to the Discord bot, asking people to verify themselves,” Serpent explained.

If a user scans such a code, bad actors can instantly log into their account and snatch their Discord token, a unique series of numbers and letters that is created when people connect to the app. If this happens, users need to reset their passwords as soon as possible.

Why is it dangerous?

While access to a Discord account won’t directly endanger someone’s crypto or NFTs, such security breaches are still dangerous and can enable to all manner of cyberattack vectors.

5/ Thank for coming to my ted talk. Stay safe & stay vigilant, threat actors are everywhere these days and they try to scam us 24/7. Double check everything you see and ask yourself: “Is this safe to click” -K3rnel🤍

K3rnelPan1c.eth (@Krn3lPanic) March 14, 2022

For example, malicious QR codes can be used to add new—and potentially suspicious—contacts to users’ lists. Further, such codes also allow to connect victims’ devices to the hacker’s network, automatically initiate phone calls as well draft emails and send text messages. Not to mention that such QR codes can reveal users’ locations and initiate fraudulent payments.

Things we can no longer do:

📍open dms on discord 📍scan QR codes📍click unknown links📍use discord 📍click on google drive links📍do art commissions for strangers 📍store nfts on hot wallets📍 ______________________

Ƨ 👁 and 776 others (@stellabelle) April 4, 2022

As CryptoSlate reported, cyberattacks have been picking up steam on Discord lately. Notably, not only regular users but major crypto companies are being hacked as well.

On April 1, for example, the Discord server of the famous Bored Ape Yacht Club NFT collection was compromised by hackers.

STAY SAFE. Do not mint anything from any Discord right now. A webhook in our Discord was briefly compromised. We caught it immediately but please know: we are not doing any April Fools stealth mints / airdrops etc. Other Discords are also being attacked right now.

Bored Ape Yacht Club (@BoredApeYC) April 1, 2022

At the time, the hacker gained access to the Discord server that hosts Bored Ape Yacht Club, Mutant Ape Yacht Club, and Mutant Ape Kennel Club—all three NFT collections from Yuga Labs.

Apart from Yuga Labs, Discord servers of other NFT projects, such as Nyoki Club and Shamanzs NFT, were also hacked that day.

Scammers have reportedly found a new way to compromise users’ Discord accounts — including those on servers related to cryptocurrencies and non fungible-tokens (NFTs) — by hijacking QR codes used for logging in.

According to pseudonymous crypto enthusiast Serpent, malicious actors — disguised as Discord’s verified bot called Wick—are now reaching out to users to offer a collaboration, potential employment, or some other enticing opportunities. But there’s a catch — to continue the discussion, scammers ask users to verify via a QR code.

New NFT discord scam going around, this time using QR codes.

Pretty terrible scam, but this is how it works 🧵👇

Serpent (@SerpentAU) April 4, 2022

This is because Discord has an option to log in using a special QR, bypassing two-factor authentication. In reality, however, “scammers are using Chrome drivers to open the login page, get the QR code image, then send it to the Discord bot, asking people to verify themselves,” Serpent explained.

If a user scans such a code, bad actors can instantly log into their account and snatch their Discord token, a unique series of numbers and letters that is created when people connect to the app. If this happens, users need to reset their passwords as soon as possible.

Why is it dangerous?

While access to a Discord account won’t directly endanger someone’s crypto or NFTs, such security breaches are still dangerous and can enable to all manner of cyberattack vectors.

5/ Thank for coming to my ted talk. Stay safe & stay vigilant, threat actors are everywhere these days and they try to scam us 24/7. Double check everything you see and ask yourself: “Is this safe to click” -K3rnel🤍

K3rnelPan1c.eth (@Krn3lPanic) March 14, 2022

For example, malicious QR codes can be used to add new—and potentially suspicious—contacts to users’ lists. Further, such codes also allow to connect victims’ devices to the hacker’s network, automatically initiate phone calls as well draft emails and send text messages. Not to mention that such QR codes can reveal users’ locations and initiate fraudulent payments.

Things we can no longer do:

📍open dms on discord 📍scan QR codes📍click unknown links📍use discord 📍click on google drive links📍do art commissions for strangers 📍store nfts on hot wallets📍 ______________________

Ƨ 👁 and 776 others (@stellabelle) April 4, 2022

As CryptoSlate reported, cyberattacks have been picking up steam on Discord lately. Notably, not only regular users but major crypto companies are being hacked as well.

On April 1, for example, the Discord server of the famous Bored Ape Yacht Club NFT collection was compromised by hackers.

STAY SAFE. Do not mint anything from any Discord right now. A webhook in our Discord was briefly compromised. We caught it immediately but please know: we are not doing any April Fools stealth mints / airdrops etc. Other Discords are also being attacked right now.

Bored Ape Yacht Club (@BoredApeYC) April 1, 2022

At the time, the hacker gained access to the Discord server that hosts Bored Ape Yacht Club, Mutant Ape Yacht Club, and Mutant Ape Kennel Club—all three NFT collections from Yuga Labs.

Apart from Yuga Labs, Discord servers of other NFT projects, such as Nyoki Club and Shamanzs NFT, were also hacked that day.

While the armed war between Ukraine and Russia may appear to be confined to a military level, it is likely to have far-reaching consequences for much of the world.

Economic analysts expect it to trigger a dramatic rise in inflation partly because Russia is the world’s biggest exporter of natural gas and second-largest seller of oil.

In addition, hundreds of thousands, if not millions, of people will be displaced from Ukraine, posing a new refugee issue for the world (and specifically Europe).

Furthermore, there’s cryptocurrency. While many people aren’t focusing on the cryptocurrency market and industry at the moment, there’s no doubt that the protracted fight will affect Bitcoin.

There is no doubt that it has already had some effects, particularly since Bitcoin dropped by more than 10% in a single day in response to the initial rumors of a Russian invasion on February 24.

Russia’s potential escape from sanctions by using crypto may result in increased regulation of the business in the West, but the conflict may benefit the market.

This is mainly because it illustrates how cryptocurrencies, including Bitcoin, can boost great causes and empower individuals when other avenues are unavailable.

Those in need can benefit from cryptocurrency in real-world situations

Since the initial assault, the market has reassuringly stabilized (as of this writing).

Bitcoin fell to a low of $34,740 on February 24 as investors fled riskier assets.

The Russian incursion into Ukraine raised significant concerns at the time, but given the Ukrainian forces’ resistance and the perception that sanctions against Russia were less severe than expected, the situation has since improved for BTC (and other assets).

Indeed, BTC has increased by an astonishing 25% since plummeting to £34,740, to over $43,500.

Depending on the situation, the market could fall again if violence erupts or sanctions have a significant impact on Western nations.

Despite the ongoing conflict, markets are currently performing well in light of the current situation and many other aspects of the conflict that are beneficial to crypto. In particular, cryptocurrency has once again proven its worth as a tool for crowdfunding and charitable giving.

In the latest tally from the analytical firm Elliptic, the Ukrainian government and pro-government NGOs have received approximately $24.6 million in various cryptocurrencies.

This sum is the result of 26,000 separate gifts, including one for $3 billion in bitcoin and another for $1.86 million. Ukraine has also been offered contributions from Uniswap (crypto exchange), Aid for Ukraine (DAO) and Dr. Gavin Wood (the founder of Polkadot).

Since the start of the conflict, Ukrainian officials posted Bitcoin and Ethereum addresses on their Twitter account, giving donors a direct and clear address to which to send donations.

Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.

BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P

ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14

Ukraine / Україна (@Ukraine) February 26, 2022

Over $10.2m (9.2 million euros) worth of cryptocurrency was donated to the wallets within four days of the start of the invasion.

The Ukraine government has gone on to receive more than $100m worth of crypto ever since, with 60% of the donations coming from the “Crypto Fund for Ukraine”, which is run by Michael Chobanian – the founder of the Ukrainian crypto exchange Kuna.

“We are still collecting crypto. It is being spent on aid like daily rations and bullet-proof vests and helmets,” the 37-year-old Ukrainian told AFP.

Such contributions benefit not only the Ukrainian government and military but also show how cryptocurrencies can help break down barriers to international transactions and operations. To put it another way, cryptocurrency acts as a dependable link between various peoples and countries.

Indeed, numerous recent cryptocurrency-related headlines from Ukraine have co...

While the armed war between Ukraine and Russia may appear to be confined to a military level, it is likely to have far-reaching consequences for much of the world.

Economic analysts expect it to trigger a dramatic rise in inflation partly because Russia is the world’s biggest exporter of natural gas and second-largest seller of oil.

In addition, hundreds of thousands, if not millions, of people will be displaced from Ukraine, posing a new refugee issue for the world (and specifically Europe).

Furthermore, there’s cryptocurrency. While many people aren’t focusing on the cryptocurrency market and industry at the moment, there’s no doubt that the protracted fight will affect Bitcoin.

There is no doubt that it has already had some effects, particularly since Bitcoin dropped by more than 10% in a single day in response to the initial rumors of a Russian invasion on February 24.

Russia’s potential escape from sanctions by using crypto may result in increased regulation of the business in the West, but the conflict may benefit the market.

This is mainly because it illustrates how cryptocurrencies, including Bitcoin, can boost great causes and empower individuals when other avenues are unavailable.

Those in need can benefit from cryptocurrency in real-world situations

Since the initial assault, the market has reassuringly stabilized (as of this writing).

Bitcoin fell to a low of $34,740 on February 24 as investors fled riskier assets.

The Russian incursion into Ukraine raised significant concerns at the time, but given the Ukrainian forces’ resistance and the perception that sanctions against Russia were less severe than expected, the situation has since improved for BTC (and other assets).

Indeed, BTC has increased by an astonishing 25% since plummeting to £34,740, to over $43,500.

Depending on the situation, the market could fall again if violence erupts or sanctions have a significant impact on Western nations.

Despite the ongoing conflict, markets are currently performing well in light of the current situation and many other aspects of the conflict that are beneficial to crypto. In particular, cryptocurrency has once again proven its worth as a tool for crowdfunding and charitable giving.

In the latest tally from the analytical firm Elliptic, the Ukrainian government and pro-government NGOs have received approximately $24.6 million in various cryptocurrencies.

This sum is the result of 26,000 separate gifts, including one for $3 billion in bitcoin and another for $1.86 million. Ukraine has also been offered contributions from Uniswap (crypto exchange), Aid for Ukraine (DAO) and Dr. Gavin Wood (the founder of Polkadot).

Since the start of the conflict, Ukrainian officials posted Bitcoin and Ethereum addresses on their Twitter account, giving donors a direct and clear address to which to send donations.

Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.

BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P

ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14

Ukraine / Україна (@Ukraine) February 26, 2022

Over $10.2m (9.2 million euros) worth of cryptocurrency was donated to the wallets within four days of the start of the invasion.

The Ukraine government has gone on to receive more than $100m worth of crypto ever since, with 60% of the donations coming from the “Crypto Fund for Ukraine”, which is run by Michael Chobanian – the founder of the Ukrainian crypto exchange Kuna.

“We are still collecting crypto. It is being spent on aid like daily rations and bullet-proof vests and helmets,” the 37-year-old Ukrainian told AFP.

Such contributions benefit not only the Ukrainian government and military but also show how cryptocurrencies can help break down barriers to international transactions and operations. To put it another way, cryptocurrency acts as a dependable link between various peoples and countries.

Indeed, numerous recent cryptocurrency-related headlines from Ukraine have co...

On March 31, 2022, the People’s Bank of China held a symposium on the pilot work of digital RMB (digital yuan) research and development to summarize the preliminary research and development pilot work, and arrange the deployment of the next stage of work.

Present at the symposium were Yi Gang, Governor of the People’s Bank of China, and Fan Yifei, Vice Governor of the People’s Bank of China, as per a statement from PBoC.

Also attending the symposium were relevant departments, bureaus, and directly affiliated units of the People’s Bank of China, all-digital RMB participating R&D institutions, and relevant “responsible comrades” of the local governments and branches of the People’s Bank of China in the pilot regions.

“The meeting believed that since 2017, the People’s Bank of China, together with all participating research institutions, and with the strong support of the party committees and governments of the pilot areas, have made overall plans and careful organization to carry out the pilot projects steadily, dynamically improve the business technology design, continue to innovate application scenarios, and focus on solving financial service difficulties,” the statement reads.

Pain points verified the feasibility and reliability of digital yuan

According to the meeting parties, the pain points have preliminarily verified the feasibility and reliability of digital renminbi-related theories, policies, businesses, and technologies. At present, the digital renminbi has formed a number of application models in the fields of wholesale and retail, catering, cultural tourism, and government affairs payment.

Without providing any specific data or other evidence, the PBoC states that the major pilot projects such as the 2022 Beijing Winter Olympics have been successfully completed, “the number of users, merchants, and transactions participating in the pilot has grown steadily, and the market has responded well.”

The PBoC does not, however, seem to consider the digital renminbi to be ready for a full-scale roll-out in the entire country, instead, trials will continue in additional cities and areas. The PBoC pointed out that there remain issues that need to be sorted out through further research and exploration.

To this point, the statement says the research and development of digital renminbi will face new situations and new problems in terms of demonstrating convenience, optimizing inclusiveness, highlighting innovation, ensuring security, reflecting compliance, and strengthening sustainability.

Furthermore, the PBoC emphasized that the digital renminbi research and development pilot should adhere to the “people’s nature”, without expanding on the meaning of this expression.

The future is dependent on softer values

In the statement there are, however, hints that the future success of the digital renminbi, and for it “to play a greater role”, the issue is not a technical one but is rather dependent on “softer” values such as the coverage and inclusiveness of financial services, it helps local economic development, supports the construction of digital government affairs, improves the quality and efficiency of financial services for the real economy, and improve the business environment.

“In the process of the development, promotion, and popularization of the digital renminbi, the policy design should fully stimulate the enthusiasm and creativity of financial institutions, technology enterprises, local governments, and other parties, and encourage competition in the promotion and operation,” the statement reads, which may be interpreted as some participating entities aren’t as enthusiastic about the digital renminbi as the Chinese government and the PBoC would want them to be.

Other areas mentioned in the statement, that seem to need further research, include legislative questions and the impact of the digital renminbi on the financial system, the security of the digital renminbi system, and the relationship between privacy protection ...

On March 31, 2022, the People’s Bank of China held a symposium on the pilot work of digital RMB (digital yuan) research and development to summarize the preliminary research and development pilot work, and arrange the deployment of the next stage of work.

Present at the symposium were Yi Gang, Governor of the People’s Bank of China, and Fan Yifei, Vice Governor of the People’s Bank of China, as per a statement from PBoC.

Also attending the symposium were relevant departments, bureaus, and directly affiliated units of the People’s Bank of China, all-digital RMB participating R&D institutions, and relevant “responsible comrades” of the local governments and branches of the People’s Bank of China in the pilot regions.

“The meeting believed that since 2017, the People’s Bank of China, together with all participating research institutions, and with the strong support of the party committees and governments of the pilot areas, have made overall plans and careful organization to carry out the pilot projects steadily, dynamically improve the business technology design, continue to innovate application scenarios, and focus on solving financial service difficulties,” the statement reads.

Pain points verified the feasibility and reliability of digital yuan

According to the meeting parties, the pain points have preliminarily verified the feasibility and reliability of digital renminbi-related theories, policies, businesses, and technologies. At present, the digital renminbi has formed a number of application models in the fields of wholesale and retail, catering, cultural tourism, and government affairs payment.

Without providing any specific data or other evidence, the PBoC states that the major pilot projects such as the 2022 Beijing Winter Olympics have been successfully completed, “the number of users, merchants, and transactions participating in the pilot has grown steadily, and the market has responded well.”

The PBoC does not, however, seem to consider the digital renminbi to be ready for a full-scale roll-out in the entire country, instead, trials will continue in additional cities and areas. The PBoC pointed out that there remain issues that need to be sorted out through further research and exploration.

To this point, the statement says the research and development of digital renminbi will face new situations and new problems in terms of demonstrating convenience, optimizing inclusiveness, highlighting innovation, ensuring security, reflecting compliance, and strengthening sustainability.

Furthermore, the PBoC emphasized that the digital renminbi research and development pilot should adhere to the “people’s nature”, without expanding on the meaning of this expression.

The future is dependent on softer values

In the statement there are, however, hints that the future success of the digital renminbi, and for it “to play a greater role”, the issue is not a technical one but is rather dependent on “softer” values such as the coverage and inclusiveness of financial services, it helps local economic development, supports the construction of digital government affairs, improves the quality and efficiency of financial services for the real economy, and improve the business environment.

“In the process of the development, promotion, and popularization of the digital renminbi, the policy design should fully stimulate the enthusiasm and creativity of financial institutions, technology enterprises, local governments, and other parties, and encourage competition in the promotion and operation,” the statement reads, which may be interpreted as some participating entities aren’t as enthusiastic about the digital renminbi as the Chinese government and the PBoC would want them to be.

Other areas mentioned in the statement, that seem to need further research, include legislative questions and the impact of the digital renminbi on the financial system, the security of the digital renminbi system, and the relationship between privacy protection ...