The Chinese government is taking timely and appropriate steps to protect its digital yuan. Imagine a situation where an individual or a specific organization has created their own stablecoin backed by a digital or physical yuan. Thereafter, due to some kind of abuse, this stablecoin disappears and everyone who purchased this stablecoin has suffered losses. Even if no one can directly make any claims to the Chinese government, the image of the yuan will suffer in any case. Therefore, this bill is intended to prevent such undesirable consequences.
It is likely that other states will take similar measures over time.