China, which scrutinized the CBDC (central bank digital currency), could not prevent money laundering with the digital yuan!
The Chinese government, which took action after the incident was noticed, started to circulate that it may roll up its sleeves to reconsider the security of the central bank digital currency (CBDC), while calling the Xinmi police to duty.
According to the information learned, Xinmi Public Security has arrested 11 people suspected of illegally using digital fiat to launder money, as a result of its joint work with the Anti-Fraud Center of the Zhenzhou Public Security Bureau. Authorities said they were working with and laundering money with an overseas fraud group in Cambodia.
The incident in question was recorded as the first case where cryptocurrencies were used for telecommunication fraud. However, China was very determined to keep its digital currency away from illegal activities, but unfortunately the account at home did not fit the market.
The Chinese Loved Digital Currency!
However, citizens in the country seem very willing to use the digital yuan. So much so that according to Mu Changchun, head of the People’s Bank of China Digital Currency Research Institute, the number of e-CNY users has increased more than 6 times in the last 4 months.
140 million active e-CNY wallets have risen noticeably with the complete ban of Bitcoin. The number of corporate e-CNY wallets has tripled from 3.5 million four months ago to 10 million. On the other hand, transaction volume has also increased to 62 billion yuan ($9.7 billion), but the government is currently on the alert for an increase in money laundering cases.