According to Fan, the digital renminbi is legally compensatory to the traditional fiat currency. In the article, the deputy governor outlined that the digital RMB is “mainly positioned” as M0, which means that the digital currency is part of the supply of paper notes and coins. As such, the digital RMB “needs to comply with laws and regulations related to cash management”, Fan said.
The deputy governor went on to say that according to the renminbi’s indemnity provisions, the digital renminbi could be used to pay “all public and private debts within the territory of our country.” Fan emphasized that the digital currency should be accepted everywhere in the country, and “no unit or individual may refuse to accept it if the conditions are met.”
No one can refuse China’s digital currency, says central bank exec, CoinTelegraph, Sep 14