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
  • 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.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers