China authorities have initiated an inquiry into Yao Qian, a local official who is known for his support of blockchain technology. The investigation is being conducted by the Central Committee of the Communist Party of China and is focused on suspicions of serious violations of discipline and law. The specific reasons for the investigation have not been disclosed.
Yao Qian currently holds the position of director of the Science and Technology Supervision Bureau at the China Securities Regulatory Commission. He is a significant figure in the Chinese blockchain community and is sometimes referred to as China’s “Crypto Dad.” In the past, he served as the first director of China’s central bank digital currency (CBDC) research department at the People’s Bank of China from 2017 to 2018.
Even after leaving his role in CBDC development, Yao has remained involved in digital currency research and discussions. In May 2021, he predicted that state-run digital currencies would become more sophisticated and could eventually operate on blockchain networks like Ethereum.
China’s CBDC, the digital yuan, was piloted in late 2019, making China one of the first jurisdictions to conduct real-world tests of a CBDC. Following the domestic testing of the digital yuan, the People’s Bank of China initiated cross-border CBDC pilots in collaboration with central banks in Hong Kong, Thailand, and the United Arab Emirates in 2021.
It is worth noting that while China has embraced blockchain technology, the government has taken a hostile stance towards cryptocurrencies and has banned all crypto transactions in 2021. In contrast, Hong Kong, which is a special administrative region of China, has been actively embracing cryptocurrencies in recent years. On April 24, the Securities and Futures Commission of Hong Kong approved the first batch of spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs). This approval has positioned Hong Kong to surpass the United States in the launch of spot Ether ETFs, with trading scheduled to begin on April 30.