Three US Senators Introduces Bill to Ban China’s e-CNY

Three United States Republican Senators, Tom Cotton, Mike Braun, and Marco Rubio have introduced a bill that will prohibit the operations of the Central Bank Digital Currency (CBDC) of the People’s Republic of China dubbed Digital Yuan (e-CNY). 

The Bill, dubbed “Defending Americans from Authoritarian Digital Currencies Act” was proposed to prevent the Chinese government from spying on the financial activities of Americans. Should the bill pass, it will prevent App Stores from supporting the e-CNY or any application that provides support for the CBDC at all.

The Bill defined app stores as all websites, software apps, or electronic devices that can host digital currency. 

“The Chinese Communist Party will use its digital currency to control and spy on anyone who uses it. We can’t give China that chance — the United States should reject China’s attempt to undermine our economy at its most basic level,” said Senator Cotton.

In addition, Senator Rubio noted that America “..cannot allow this authoritarian regime to use their state-controlled digital currency as an instrument to infiltrate our economy and the private information of American citizens,” adding that. “This is a major financial and surveillance risk that the United States cannot afford to make.”

China’s e-CNY Dominance

Amongst developed countries today, China comes off as one with advanced testing records for its CBDC. While Great Britain and the United States are notably advancing research as it concerns their CBDC projects with the former taking comments for a policy paper billed for later in the year, China has advanced from retail testing and deployed it at the last Olympic games held in Beijing.

With cross-border transactions notably inevitable in global economic trade, the chances are that countries with CBDCs will want to integrate their new money. With the latest Bill, the Chinese government will not have that luxury, thus, taming the influence of the Chinese government as one of the pioneers of CBDC.

The draft Bill is the second of its type from the US Senate and is sponsored by Republicans and seeing that protecting the US from China seems to be a bi-partisan agenda, chances are the bill will scale through.