In a significant development within China’s blockchain community, Yao Qian, a prominent figure known as “Crypto Dad,” is currently under investigation by Chinese authorities for suspected legal violations. Yao, who formerly spearheaded the development of China’s central bank digital currency (CBDC) at the People’s Bank of China (PBoC), is now facing scrutiny from the Central Committee of the Communist Party of China.

Investigation of Yao Qian’s Alleged Violations

According to reports from the Shanghai Securities News on April 26, Yao Qian, currently serving as the director of the Science and Technology Supervision Bureau at the China Securities Regulatory Commission, is under investigation for purportedly committing “serious violations” of both discipline and law. The specific nature of these alleged infractions has not been disclosed by authorities.

Yao Qian, director of the Science and Technology Supervision Bureau of the China Securities Regulatory Commission. Source: 21jingji.com

Yao Qian: A Key Figure in Chinese Blockchain Development

Yao Qian played a pivotal role in China’s foray into digital currency innovation as the first director of the CBDC research department at the PBoC from 2017 to 2018. Despite stepping away from active CBDC development, Yao remained actively engaged in digital currency research and discussions, offering insights into the future direction of state-run digital currencies.

China’s CBDC Initiatives and Regulatory Landscape

China has been at the forefront of CBDC experimentation, piloting its digital yuan in late 2019, marking one of the world’s pioneering real-world CBDC tests. The launch of the digital yuan aligns with China’s broader strategy of embracing blockchain technology while adopting a cautious stance towards cryptocurrencies, as demonstrated by the government’s ban on all crypto transactions in 2021.

Contrasting Approaches in Mainland China and Hong Kong

While mainland China has embraced blockchain technology while shunning cryptocurrencies, Hong Kong, as a special administrative region, has taken a more progressive approach towards crypto. Recently, Hong Kong’s Securities and Futures Commission approved the first batch of spot Bitcoin and Ether exchange-traded funds (ETFs), positioning itself as a key player in the global crypto market.

As the investigation into Yao Qian unfolds, it underscores the complexities and challenges facing the development and regulation of blockchain and digital currency initiatives in China.