Yao Qian, once a key figure in China CBDC , has been accused of using virtual currencies to facilitate bribery and misconduct. The former head of the Science and Technology Supervision Department at the China Securities Regulatory Commission (CSRC) faces prosecution following allegations of abuse of power for personal financial gain.
The charges, announced by the Central Commission for Discipline Inspection (CCDI), include manipulating regulatory authority, fostering corrupt ties, and engaging in improper dealings with technology providers.
Abuse of Power and Financial Misconduct
Yao allegedly exploited his position to benefit specific technology firms, facilitating business expansions and procurement deals through illicit means. The accusations also extend to accepting lavish gifts, organizing extravagant events, and seeking favours in recruitment. He is said to have borrowed large sums of money illegally and invested in enterprises while accepting bribes of “extremely huge” amounts.
The CCDI further criticized Yao for engaging in superstitious practices, a taboo in Communist Party governance.
A Fall from Grace
Yao Qian’s career showcased a sharp rise before his dramatic fall. As the first director of the People’s Bank of China’s Digital Currency Research Institute, he played a pivotal role in developing the digital yuan, cementing China’s leadership in central bank digital currency (CBDC) innovation.
Despite his achievements, his tenure coincided with China’s strict crackdown on cryptocurrencies, often at odds with his forward-thinking stance.
Cryptocurrency and Corruption Concerns
Yao’s case underscores the growing misuse of cryptocurrencies in bribery and corruption. The scandal casts a shadow over China’s ambitious digital currency program, highlighting vulnerabilities in integrating blockchain and cryptocurrency within governance frameworks.
His prosecution follows other high-profile crypto bribery cases, including BIT Mining’s $4 million U.S. settlement for violations under the Foreign Corrupt Practices Act.
As China’s digital finance ambitions continue, Yao’s downfall serves as a stark reminder of the ethical challenges in a rapidly evolving financial landscape.
