Home News Republican lawmakers introduce bill targeting China’s CBDC on sanctions, privacy

Republican lawmakers introduce bill targeting China’s CBDC on sanctions, privacy

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Nine Republican senators have endorsed legislation aimed at regulating US federal agencies’ policy around worries that China’s digital yuan could be used to evade sanctions and endanger users’ personal information.

Senators Bill Cassidy of Louisiana and Marsha Blackburn of Tennessee submitted the Say No to the Silk Road Act on Wednesday. With the support of seven other Republican senators. The bill would require certain federal agencies to report on China’s central bank digital currency, or CBDC. Due to China’s implementation of the CBDC, the two senators expressed worry about digital surveillance. And the privacy of nationals and overseas users.

If the law is passed, the US Secretary of Commerce and Commerce Representative will report on the effects of the digital yuan on trade. As well as trade enforcement activities and the US Department of State will publish a warning about the CBDC. The bill also mandated that the Office of Management and Budget draught guidelines for agencies that use the digital yuan, as well as those foreign governments receiving military aid, reveal if they use the CBDC.

“If left uncontrolled, technology such as China’s digital yuan will enable Russia to avoid global sanctions on networks like SWIFT. As well as enabling the CCP to further spy and threaten their populace,” Blackburn warned.

The campaign against China’s CBDC

With US and EU sanctions harming Russia’s economy, some sources claim the country may seek answers in China, utilising payment systems such as UnionPay. Many senators are looking into digital assets as a way for Russia to get around these sanctions. President Joe Biden of the US revealed on Wednesday that he had signed an executive order. Aiming at establishing a regulatory framework for cryptocurrency, implying that it may be in use to avoid sanctions.

Crypto-related regulations in the US have not always been entirely partisan. However, Republican lawmakers appear to be leading the campaign against China’s CBDC. Which could pose a threat to the dollar’s dominance. Senators Blackburn and Cynthia Lummis of Wyoming, both supporters of the bill, wrote a letter to Olympic authorities in July 2021. Urging them to prohibit American athletes from using the digital yuan during the Beijing Winter Games. Few foreign athletes used the digital money at the tournament, according to reports. Despite the fact that Visa also accepted.

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