Yuan-themed digital rip-off: Chinese language police warn residents to watch out

TL; DR breakdown

  • Chinese police are warning residents of CBDC-related fraud.
  • The scammers claimed they were digital yuan promoters.
  • So far, they have successfully defrauded no fewer than 500 citizens.

The police are warning residents of digital yuan fraud

One of the main complaints with the cryptocurrency is that it is used as a front for criminal activity. Currently, Chinese scammers appear to be targeting the digital yuan. Some companies in China have fooled citizens of their hard-earned money on the pretext that they are sponsors of the national digital currency.

The fraudsters are hiding under the guise of issuing a digital yuan wallet with the company name “Central Bank’s International Wallet”. However, the local police have labeled them a fraud and warned locals to be careful with the group. The scammers lure their victims by promising them access to a nonexistent $ 186 million fund.

In addition, the scammers allegedly revealed that their targets were people who could afford $ 24,800. Although the alleged wallet has not yet been launched, the scammers have managed to fool no less than 500 people.

China continues to develop a solid framework for the digital yuan

The group made their victims believe that the money raised would be used to promote the digital yuan nationally and globally. They promised their victims a 2% bonus on every deposit. People’s Bank of China has warned residents about organizations applying for their funds to promote the digital yuan.

China led the way on CBDC development, a report earlier this month revealed that it was aggressively investing in the project. However, the country has continued to create an underground framework for the CBDC ecosystem.

In order to encourage the early adoption of electronic payments in digital currency, many local authorities have conducted various air drops and lotteries. Also, a certain Chinese bank is now allowing its customers to convert their money into digital yuan using their cell phones or an ATM.

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