Don’t fall for these Chinese digital coin scams issued by central banks

Some cities in China will soon begin testing a new digital currency from the Central Bank, or CBDC. Scammers are now taking advantage of this by posing as „CBDC test“ groups.

According to Tencent QQ, criminals are promoting a scam that asks potential victims to open a new debit card. Victims are told that they will receive a „significant amount of money“ after an initial investment, usually starting at around 10,000 yuan (USD 1430).

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Each victim is promised that their investment will grow to 70,000 yuan (USD 10,023) within an undisclosed period.

This scam appears to be most prevalent in the cities where CBDC testing will eventually take place: Shenzhen, Xi’an, Chengdu and Suzhou. However, the People’s Bank of China, or Bitcoin Code, has not given the official green light to initiate such testing.

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Some reports indicate that fraudsters have designed a mobile application for victims to manage their non-existent investments.

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At the time of publication, PBoC has not announced when they will begin testing their CBDC program in China. In 2019, China’s banking authorities stated that they would announce their next CBDC launch through official channels.

Chinese authorities recently dismantled a major crypto-currency-related scam in Wenzhou. The scheme accumulated more than 100 million yuan (USD 14.31 million), which was seized along with several cars and luxury villas.