China’s CBDC Project ‘Digital RMB’ Faces Growing Doubts After Yao Qian’s Dismissal

Key Takeaways

• The Chinese government’s digital RMB project has faced significant setbacks.
• These include the resignation and corruption charges against key advocate Yao Qian.
• Analysts suggest that internal power struggles within the Chinese Communist Party may hinder the project’s progress.

China’s digital RMB, initially positioned as a revolutionary financial tool, is now mired in uncertainty.

Yao Qian, the project’s founding advocate, has been accused of corruption, casting doubt on its direction.

Yao, a former regulatory leader, was instrumental in shaping the digital RMB under President Xi Jinping’s vision.

His expulsion from the Communist Party has raised questions about the initiative’s viability and political backing.

Concerns On Digital RMB

The digital RMB was seen as a bold step to strengthen China’s financial control and challenge the dominance of the U.S. dollar.

However, analysts suggest that Yao’s fall may reflect deeper internal power struggles within the CCP.

Reports from independent Chinese outlets hint at factional resistance to the project, leaving its future uncertain.

Even public interest in the digital RMB has dwindled. A September survey revealed that 90% of respondents had neither seen nor used it, exposing skepticism about its practical value.

Adoption Struggles and Political Implications

Despite its early ambitions, the digital RMB has faced criticism for being incomplete.

The app remains underdeveloped, and its promotion has shifted from portraying it as transformative to merely a supplement to existing systems like WeChat Pay and Alipay.

Tang Jingyuan, a U.S.-based commentator, noted that Yao’s corruption charges highlight deeper flaws in the initiative.

He argues that China’s leadership may be pausing the project to address economic crises and avoid potential public unrest.

For now, the digital RMB’s future hangs in the balance, caught between political maneuvering and a hesitant populace.

Its next steps may depend not only on technology but also on resolving China’s internal conflicts.