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.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

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

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago

article-image

The final Bitcoin halving, where the mining reward becomes smaller than one satoshi, is expected to occur in 2140