Yao Qian, the former head of the digital currency wing of the People's Bank of China (PBOC), has been convicted for accepting a bribe of 2,000 ETH, valued at approximately $37 million. The conviction, detailed in a state television documentary aired on January 11, exposes a major corruption scandal at the heart of China's central bank digital currency (CBDC) development.
Yao Qian, 56, was instrumental in developing China's digital yuan (e-CNY). Investigators discovered a hardware wallet in his office dresser, providing tangible evidence. His illicit activities included receiving 2,000 ETH in 2018 for assisting a blockchain entrepreneur with a project launch. He later converted some cryptocurrency to yuan, purchased a Beijing mansion worth 20 million yuan registered to a relative, and funneled 12 million yuan through shell companies he helped with his government position.
The case highlights a stark paradox: while China has banned cryptocurrency use, a key architect of its state-backed digital currency was deeply involved in crypto corruption. Shi Changping of the Shanwei Disciplinary Inspection Commission noted that blockchain technology's transparency—creating permanent digital footprints—ultimately helped expose Qian's intricate scheme.
This scandal coincides with another high-profile case: the arrest of alleged crypto scam billionaire Chen Zhi, from whom U.S. prosecutors seized about $15 billion in Bitcoin. These events have sparked a public debate in China about blockchain's supposed anonymity versus its transparency, with discussions flourishing on social media platforms.
Despite these controversies, China continues to advance its digital yuan pilot program, maintaining its position as a world leader in CBDC development according to the CBDC Tracker. The government's stance on crypto remains firm; the PBOC reiterated its crackdown on virtual currencies last October, and in November, 13 government agencies coordinated enforcement against illegal digital currency activities, specifically flagging risks from foreign-issued stablecoins.
