Yao Qian, a prominent “pro-blockchain official” in China, is in the red investigation by Chinese authorities for undisclosed “law violations”.

Blockchain Propagation Background and Current Attacks

Qian, known for his key role in the development of China’s Central Bank digital currency (CBDC), is a leading voice in the country’s blockchain initiative.

Qian’s efforts played a key role in the conceptualization and implementation of the digital yuan, positioning China at the forefront of digital currency technology internationally.

An investigation by the Discipline Inspection and Supervision Team of the Central Discipline Inspection Commission and the National Supervisory Commission of the China Securities Regulatory Commission has raised concerns in the blockchain community.

Yao Qian’s contribution to China’s financial technology landscape is notable, serving in various crucial government positions, including director of the Department of Science and Technology Supervision and the Information Center of the China Securities Regulatory Commission.

Yao Qian has also been a “staunch” advocate of blockchain technology and digital currencies, advocating for the issuance of a state-owned digital currency back in 2017 to strengthen the market position of China’s local currency.

Wu Blockchain said: “He was the creator of China’s CBDC and served as director of the central bank’s digital currency research institute.” However, Qian is now controlled by the same government that pushes for technological advancement.

Details of the charges against Qian remain “unclear,” with authorities citing “serious violations of discipline and law” without providing further details. The report particularly points out:

Yao Qian, director of the Department of Scientific and Technological Supervision and director of the Information Center of the China Securities Regulatory Commission, is suspected of earnest violations of discipline and law and is currently under investigation by the Central Committee.

Broader Implications for Blockchain and Cryptocurrencies in China

Despite an ongoing investigation into one of its key supporters, China’s blockchain sector continues to see interest and growth, especially in areas not directly related to cryptocurrencies.

For example, the recent annual meeting of China’s political and industry leaders in Beijing presented proposals to accelerate the development of blockchain technology to improve government services, supply chains and trade.

The development indicates that while the country may be skeptical of cryptocurrencies, it sees broader applications of blockchain technology.

Moreover, Chinese financial giants such as Harvest Fund and Southern Fund are entering the international cryptocurrency space with applications to launch a modern spot Bitcoin ETF through their Hong Kong subsidiaries.

The move indicates a nuanced approach to blockchain and digital assets, suggesting a potential softening of the stance or at least an acknowledgment of the financial opportunities these technologies create on a global scale.

Featured image from Unsplash, chart from TradingView