China has begun a process to provide legal backing for its central bank digital currency.
Draft legislation states that the yuan exists in both physical and digital forms. The bill will be put to public comment through November 23, Nikkei reports.
China aims to begin issuing the digital yuan before the Winter Olympics in Beijing in February 2022.
The bill also bans organizations and individuals from making or issuing digital currencies, apparently over concern that managing the money supply would become difficult if virtual currencies issued by the private sector circulate in the market. As a result, such cryptocurrencies as Libra, which has been proposed by Facebook, may not be allowed in China.