Senators to Propose Legislation That Prohibits the Use of the Digital Yuan in Mobile Apps Developed in the USMay 27, 2022
According to the senators, the “Defending Americans from Authoritarian Digital Currencies Act” attempts to limit China’s “direct influence” on US soil.
Three Republican senators are pushing to prevent platforms from hosting apps that enable transactions in China’s digital yuan, citing concerns that the technology could be used to spy on US residents.
Senators Tom Cotton, Mike Braun, and Marco Rubio proposed the “Defending Americans from Authoritarian Digital Currencies Act” on Thursday.
In addition, the bill aims to prevent US-based businesses like Google and Apple from hosting apps that would otherwise promote or enable China’s digital yuan, commonly known as the e-CNY, on their app stores.
Following this, Cotton stated, “The Chinese Communist Party will utilize its digital currency to control and spy on everybody who uses it,” adding that they “can’t afford to give China that opportunity—the US should reject China’s attempt to weaken our economy at its most fundamental level.” Because it is state-controlled and issued by a central bank, the e-CNY, which is designed to replace actual coins and notes, differs from cryptos like Bitcoin (BTC) and Ethereum (ETH).
Note that as China’s government pressure over the use of the digital yuan grew, the country’s largest messaging app, Tencent-owned WeChat, began to support it in early January.
Earlier this year, the digital yuan made its debut at the Beijing Olympic Winter Games, where it was used in an international trial concerning foreigners and athletes.
Additionally, Senator Pat Toomey, a crypto supporter, warned US policymakers at the time to be wary of the digital yuan’s ability to bypass US sanctions and promote illegal money flows.