Republican senators – Mike Braun, Tom Cotton and Marco Rubio – introduced draft legislation focused on the Chinese digital yuan. Lawmakers are against the financial product and believe it should be banned on American soil.
China’s CBDCs should stay away from the US
The e-CNY – a centralized digital currency issued by the People’s Republic of China – has stirred the waters between the world’s two major economies. Last summer, US politicians – Marsha Blackburn, Roger Wicker and Cynthia Loomis – advised American athletes not to use the product during the 2022 Beijing Winter Olympics, citing espionage concerns.
Soon after, China’s foreign ministry hit back, urging its US allies to “stop bothering” with the digital yuan. A spokesman for the ministry, Zhao Lijian, further claimed that the US does not know what a digital currency is.
Recently three Republicans – Mike Brown, Tom Cotton and Marco Rubio – reiterated America’s predominantly negative stance on the monetary product. He introduced a draft bill aimed at restricting China’s use of CBDCs in the US App Store. The law, called the “Totalitarian Digital Currency Act,” needs to be approved by the Senate, the House and President Biden before it can go live.
The senators explained that the term “app store” describes a “publicly available website, software application, or other electronic service that distributes applications from third-party developers to users of computers, mobile devices, or any other general-purpose computing devices.” Is. .”
According to Cotton, the move is urgent, as otherwise, China could use its digital currency to “control and spy” on anyone who uses it.
“We can’t give China that chance—the United States must reject China’s attempt to weaken our economy to its most basic level,” he said.
Speaking on the draft legislation, Senator Rubio was also there:
“There is no point in tying ourselves to the digital currency of a genocidal regime that hates us and wants to replace us on the world stage. This is a huge financial and surveillance risk that the United States cannot afford.
USD. to challenge
Earlier this year, CNBC fintech advisor Richard Turin said the digital yuan could undermine the dominance of the USD over the next ten years. In particular, he thinks that e-CNY could replace its rival as the currency of choice in international trade settlements.
In his view, the US should catch up with China by launching trials for a potential digital dollar. Otherwise, many countries will become less dependent on the greenback in the coming years:
“What you are going to see in the future is a rollback, a risk management exercise that seeks to gradually and perhaps reduce the reliance on the dollar from 100% to 80%, 85% a little bit.”
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