Three US GOP senators – Marsha Blackburn, Cynthia Lummis and Roger Wicker – have written to U.S. Olympic Committee Chairman Suzanne Lyons to ban American athletes from using the digital yuan during the Olympic Games. Which are due to take place in Beijing in 2022.
According to the senators, the Chinese Communist Party wants to make a “Trojan horse” out of American athletes in order to spy on US citizens. The Chinese authorities hope that athletes will continue to use digital yuan wallets after returning from China, the appeal said.
Back in October 2020, Sun Guofeng, head of the monetary policy department of the People’s Bank of China, announced that the digital yuan would be used in Beijing during the 2022 Winter Olympics. Particularly for retail.
To simplify the work with the financial instrument, local authorities are planning to establish a network of crypto ATMs. With the help of machines, foreigners, by design, will be able to exchange currency for the digital yuan.
At the moment, the Chinese authorities continue to test the CBDC.
Over 20 million wallets
The warning came days after the PBC said more than 20.8 million people opened a virtual wallet at the bank.
The document, released on July 16, says foreigners will have access to China’s CBDC. Without having to open a local bank account during trials at the 2022 Winter Olympics in Beijing.
The central bank of China hasn’t approved timetable for the full rollout of its digital currency electronic payment system (DCEP). It said 34.5 billion yuan (about $ 5.3 billion) had already been spent on nearly 71 million transactions. As part of ongoing CBDC trials over the past two years.
The digital yuan is still in testing. But fears are mounting in the US that it could cast doubt on the dollar’s status as the world’s dominant reserve currency. Chinese officials say it will be primarily used for domestic retail operations.
However, Blackburn, Lummis and Wicker fear the introduction of the digital yuan into international trade. In their opinion, the Chinese authorities are already using the latest technology to spy on Chinese citizens.
Growing US concern
This is not the first time the US has spoken out against the digital yuan. In May, analysts at the American consulting company Oliver Wyman said it could disrupt the work of the international banking system SWIFT and foreign banks.
On July 14, CryptoPotato reported that US hedge fund manager Kyle Bass warned of the potentially devastating impact of the Chinese digital currency on the US.
China can use the CBDC as leverage, forcing companies and banks to accept and accept it if they want to do business with the People’s Republic. Bass added: “Imagine what a stronghold they would have around the world if they held all our capital in this way”. China has already demonstrated this behavior by taking tough measures against the mining of decentralized competitors into its own currency. Earlier this month, the PBC also targeted stablecoins, warning that they could negatively impact financial stability.