China’s central bank, The People’s Bank of China (PBoC) will pilot a restriction on large-scale cash transactions in three different regions across the country.
Experts say that the move paves the way for its upcoming Digital Renminbi token (RMB).
On Nov. 14, Xinhuanet reported that the PBoC plans to carry out a large-scale cash management trial that will last for 2 years and will be implemented in phases such as:
Large Scale Cash Transactions Facilitate Illegal Activities: PBoC
PBoC says that large scale cash transactions facilitate illegal criminal activities such as corruption, tax evasion, and money laundering.
The People’s Bank will restrict large-amount cash deposits/withdrawals for:
Business accounts from 500,000 yuan ($71,000) and up
Personal account restrictions will range from 100,000 yuan ($14,000) to 300,000 yuan ($43,000), depending on province.
The PBoC will also tighten its control of large-value cash transactions for specific industry sectors.
It will take a closer look at:
The real estate industry in Xingtai City
The medical industry records of Qinhuangdao City
Large-scale cash withdrawals, and
Automobile sales industries in Zhejiang Province.
PBOC staff reportedly said:
“Under the requirements of large-scale cash management, banks need to deepen their understanding of current customers, strengthen risk warning and information communication for customers who are prone to generate large cash transactions, and guide them to use non-cash payment tools.”
Source: Xinhuanet.com | Image: SHINGO ITO/AFLO/ZUMA PRESS