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Monday, March 27, 2023

Senators Introduce Bill to Limit Use of China’s Digital Currency in the US

Senators Introduce Bill to Limit Use of China’s Digital Currency in the US – A bill has been presented in the United States that would restrict app platforms from hosting apps that allow transactions in China’s central bank’s digital currency, the digital yuan.

“The Chinese Communist Party intends to monitor and spy on everybody who uses its digital currency.” “We can’t give China that chance,” said the senator who introduced the bill.

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The “Defending Americans from Authoritarian Digital Currencies Act” was introduced by Senator Tom Cotton (R-Arkansas) on Wednesday. Senators Marco Rubio (R-Florida) and Mike Braun (R-Indiana) are co-sponsors of the bill.

According to the bill’s text, the measure aims to “prohibit the use of the government of the People’s Republic of China’s digital currency payment system, and for other objectives.”

Also Read: SEC Drops the Ball on Crypto Regulation and There Are Long-Term Consequences, Says Commissioner

Senator Cotton had this to say:

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“The Chinese Communist Party intends to regulate and spy on anyone who uses its digital currency. We can’t afford to give China the opportunity.”

The legislation, according to the announcement, prevents “app platforms in the United States from hosting apps that facilitate transactions utilizing the Chinese Communist Party’s digital yuan (e-CNY).”

“The Chinese Communist Party’s digital yuan gives the party direct control and access to people’s financial lives. Senator Braun stated, “We cannot let this authoritarian regime make use of their state-controlled digital currency to penetrate our economy and the private information of American citizens.”

Senator Rubio stated, “It makes absolutely no sense to attach ourselves to the digital currency of a genocidal regime that hates us and wants to replace us on the world stage,” emphasizing:

“The United States cannot afford to take this big financial and surveillance risk.”

Also Read: Chamber of Representatives in Paraguay Advances Crypto Bill

Senators Introduce Bill to Limit Use of China’s Digital Currency in the US – China’s central bank has been aggressively developing and testing its digital currency.

The digital yuan has 261 million unique users at the end of 2021, according to the latest data from the People’s Bank of China (PBOC). Furthermore, e-CNY has been used to conduct transactions worth more than 87.5 billion yuan ($13.8 billion). The Chinese central bank expanded the number of test cities for the digital yuan in April.

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