Republican senators draft a new bill to ban China’s CBDC from US app stores and protect the American people with the “Authoritarian Digital Currencies Act” so let’s find out more today in our latest cryptocurrency news.
The lawmakers in the US are moving to protect the country from the potential undesirable impacts of the global adoption of the Chinese national digital currency. The three Republican senators Tom Cotton, Marco Rubio, and Mike Braun introduced a new draft bill aiming to limit the use of the Chinese central bank’s digital currency in the US. The bill is referred to as the Defending Americans from Authoritarian Digital Currencies Act and proposes to ban the use of China’s digital currency payment system, e-CNY for US app stores as well as other purposes.
The term app store, covers all accessible websites, software apps, or other electronic services that distribute apps from the third-party developers to the users of computers, mobile devices, or other general purpose computign devices. As per the bill, the app and software distributors in the US will not support or enable transactions in e-CNY or support any app which features these transactions in the country. The senators reasoned that banning China’s digital yuan in the US will help the nation avoid control and surveillance of the user’s financial activity. Cotton who is a known proponent of the US digital dollar proejct argued that a CBDC can be used to spy on the financial activity:
“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.”
Senator Braun continued:
“We 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.”
Rubio also noted:
“This is a major financial and surveillance risk that the United States cannot afford to make.”
China is one of the world’s first countries to launch a digital currency after its trials in 2019. following multiple internal tests the Chinese government was promoting cross-border implementations of the digital yuan and worked with the central banks of Hong Kong as well as Singapore. The US Authorities historically looked at the Chinese CBDC as a national security threat while in March, another bill was proposed to limit the use of China’s digital yuan may be used to avoid sanctions and to compromise users’ personal information.
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