Nine US senators have supported a bill aimed at controlling and limiting the use of the digital currency of the Central Bank of China in cross-border transactions.
US Senators Bill Cassidy and Marsha Blackburn have introduced a bill that sets new rules and guidelines for China’s Central Bank digital currency (e-CNY) for preliminary consideration.
The Central Bank of China demonstrated the capabilities of the digital yuan at the Beijing Olympics. This raised concerns among senators because the use of e-CNY in cross-border payments could allow countries subject to U.S. sanctions to bypass global financial systems such as SWIFT, as well as allow the Chinese Communist Party (CCP) to collect users’ personal data.
“This bill will make China responsible for introducing their new digital currency. The digital yuan allows the CCP to collect personal data from both its own citizens and foreign users,” said Senator Cassidy.
Cassidy and Blackburn were joined by Senators Todd Young, Ted Cruz, Cynthia Lummis, Mike Braun, Rick Scott, Cindy Hyde-Smith ) and Tommy Tuberville. The senators propose issuing a formal warning from the US State Department regarding the use of e-CNY, as well as trade enforcement measures for the digital yuan.
The bill proposes introducing mandatory reporting reflecting the impact of the digital yuan on trade and investment agreements, as well as standardizing the procedures for transferring, storing or using the digital currency of the Central Bank of China.
In addition, any foreign government receiving aid from the United States under the Foreign Army Funding Program must disclose whether the government uses the digital yuan as its settlement or reserve currency.
Recall that, according to the App Annie analytical platform, the digital yuan wallet has become one of the most downloaded applications on Android and Apple devices in China.
Source: Bits
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