Senators Draft Bill to Ban Use of Digital Yuan in US-Based Mobile Apps

The “Defending Americans from Authoritarian Digital Currencies Act” aims to curb China’s “direct control” on US soil, the senators said

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • Three Republican senators have introduced a bill seeking to prohibit app stores from hosting apps that enable transactions in China’s digital yuan
  • Senators Tom Cotton, Mike Braun, and Marco Rubio claim the issue is a matter of national and economic security

Three Republican senators are attempting to prohibit platforms from hosting apps that enable transactions in China’s digital yuan over fears it could be used to spy on US citizens.

Senators Tom Cotton, Mike Braun, and Marco Rubio introduced the “Defending Americans from Authoritarian Digital Currencies Act” on Thursday with the aim of curbing China’s influence on US soil.

The bill seeks to prohibit US-based companies like Google and Apple from hosting apps on their app stores that would otherwise support or enable China’s digital yuan, also known as the e-CNY.

Blockworks attempted to contact both Google and Apple on the matter but did not receive a response by press time.

“The Chinese Communist Party will use its digital currency to control and spy on anyone who uses it,” said Cotton in a statement. “We can’t give China that chance—the United States should reject China’s attempt to undermine our economy at its most basic level.”

The e-CNY, which is designed to replace physical coins and notes, is unlike cryptos such as bitcoin or ether in that it is state-controlled and issued by a central bank.

China has been pushing for wider domestic use of its digital currency. In early January, China’s largest messaging app – Tencent-owned WeChat – began supporting the digital yuan as political pressure over its use ratcheted up.

The digital yuan also made an appearance at the Beijing Olympic Winter Games earlier this year where it featured in an international trial among foreigners and athletes.

At the time, crypto proponent Senator Pat Toomey cautioned US policymakers to keep a watchful eye over the digital yuan’s potential to circumvent US sanctions and facilitate illicit money flows.

“The Chinese Communist Party’s digital yuan allows direct control and access to the financial lives of individuals,” Braun said in a statement. “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.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps

article-image

The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks

article-image

PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants

article-image

Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians

article-image

Vance, an Ohio Republican, is largely seen as crypto-friendly

article-image

Plus, all the world is green as prices across the crypto space rally, with solana reaching a nearly two-week high