Nine GOP Senators from the U.S. Target China’s Digital Yuan

It seems that the new stage of economic prowess or warfare will be the central bank digital currencies (CBDCs) and top economies are already working in this direction.

On Thursday, March 10, nine Republican U.S. Senators have introduced a bill that seeks to settle regulations and guidelines relating to China’s own CBDC, the Digital Yuan. U.S. Senators Bill Cassidy, M.D. (R-LA) and Marsha Blackburn (R-TN) introduced this bill to say to the Silk Road Act.

China launched its CBDC earlier this year in January 2022. The lawmakers argue that with China’s close relations to Russia, it is allowing Russia to bypass the global financial systems like SWIFT. This means that the lawmakers are accusing China of effectively helping Russia to bypass sanctions. They have also accused the Chinese Communist Party (CCP) for collecting personal data on users.

In the bill, Dr. Cassidy writes: “China’s Digital Yuan allows the CCP to collect personal data on their own citizens and foreign users alike. This bill holds China accountable as they introduce their new digital currency.”

Senator Blackburn further added: “Under Joe Biden’s failed leadership, the new Axis of Evil is thriving. If left unchecked, technologies including China’s Digital Yuan will empower Russia to evade global sanctions on systems such as SWIFT and enable the CCP to further surveil and threaten their citizens. This legislation provides the United States with more information about the Digital Yuan to hold the new Axis of Evil to account.” 

Well, one thing is clear that China’s swift development of its CBDC Digital Yuan has forced its economic rival, the United States, to seriously think in this direction.

Earlier this week, the Joe Biden government passed the crypto executive order that seeks to bring strong regulatory framework for digital assets. Besides, President Biden has also asked the federal agencies to work on Digital Dollar.

Meaning, having a central bank digital currency is no longer avoidable to the top economies in the world. India, which has been hostile to crypto, has also set up a favourable case for CBDC Digital Rupee. As more powerful economies join, CBDC could be an inherent part for the future of finance.

With The Say No to the Silk Road Act, the U.S. lawmakers are clear that they would not tolerate easy passage of the Chinese CBDC to avoid sanctions.