The former head of China’s digital yuan initiative, Yao Qian, is reportedly facing investigation for alleged "serious violations of discipline and law."

According to reports from China’s national television CCTV, Yao Qian, who formerly led the development of China's central bank digital currency (CBDC) initiative, is currently under disciplinary review by the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at the China Securities Regulatory Commission. Additionally, he is subject to an investigation initiated by the Supervisory Committee of Shanwei City. However, specific details regarding the nature of the allegations against Qian have not been disclosed at this time.

Yao Qian played a pivotal role in spearheading the research lab for the central bank’s digital currency initiative from its inception until his departure from the People’s Bank of China in 2018. Subsequently, he transitioned to the China Securities Regulatory Commission in late 2019.

Former People’s Bank of China Governor Zhou Xiaochuan, who led the institution for 16 years until 2018, previously highlighted China’s progress in its digital yuan pilot project. During a conference in Hong Kong last November, Xiaochuan suggested that the nation is nearing the conclusion of its multi-year digital yuan pilot, indicating that the “final stage is not very far away.”

Xiaochuan emphasized China’s significant advancements in digitizing approximately 90% of retail payments and underscored the substantial business opportunities in cross-border payments. He urged central bankers to further explore this avenue.