Chinese cyberpolice have managed to recover funds worth around $47,000. However, they claim that the recovery process was long and arduous, and the trail took them through many online as well as brick and mortar institutions.
China’s digital yuan has recorded its first case of fraud. Cyberpolice in the province of Jiangxi have arrested a man named Wang (24) for allegedly posing as a public prosecutor and duping a woman from Xinyu into sending him hundreds of thousands of digital yuan (CNY), reported JX News.
According to the report, after duping the victim, Wang contacted a money-laundering organisation on social media that asked him to download a digital Yuan wallet application from a specific commercial bank. Once the wallet was set up, Wang funnelled the victim’s money into accounts of that commercial bank. He then redirected the money to an Alipay account, a subsidiary online payment platform of the Alibaba group.
Fortunately, the Chinese cyberpolice have managed to recover funds worth around $47,000. However, they claim that the recovery process was long and arduous, and the trail took them through many online as well as brick and mortar institutions.
According to Fan Yifei, deputy governor of the PBOC, the case comes as surprise as the digital yuan was introduced with the express purpose of curbing illicit activities caused by traditional coins and cash.
Since its introduction in 11 cities earlier this year, the PBOC has constantly added new functionalities and security measures to the digital yuan through several updates and upgrades. The central bank digital currency (CBDC) is also set to undergo its first facelift in the coming days. The update, named 1.07, is designed to harness new functionalities on iPhones, with Apple’s iOS 15.4 update also set to drop this week.
The latest version of the app will improve accessibility services by offering features such as voice-input passwords and improved facial recognition functions. The update will also make it easier for users to retrieve lost or forgotten login details and passwords. These features will go live once iPhone-using digital CNY holders update the app and their operating systems.
Even after having a relatively successful launch, experts are saying that the final rollout of the Digital Yuan wallet may be a ways off.
In a roundtable hosted by the Economic Daily, Li Yiyang, a senior economist at the China Construction Bank’s Research Institute, claimed that the application was still in need of various “technological improvements” before it could be rolled out in a nationwide capacity.
Yiyang believes that the process of introducing the digital yuan to every household in China will be gradual, requiring constant monitoring and upgrading. Yiyang also stated the impact of the digital yuan on the financial system is still uncertain.
In the interim, the competition for creating a CBDC is heating up in various countries as the popularity of digital assets is growing day by day. Governments worldwide want to leverage the underpinning technology of digital assets like Bitcoin while maintaining control over it and ensuring financial stability.
In his recent crypto executive order, US President Joe Biden called for federal agencies to “urgently” research and look into the development of the digital dollar, as they don’t want China’s digital Yuan to undermine the US dollars dominance in the world.
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