Updated · Jun 24, 2022
Newly Drafted Bill to Bar Digital Yuan from Apps Stores
Updated · May 27, 2022
US Senators Tom Cotton, Mike Braun, and Marco Rubio back the legislation, released on Thursday.
A Bill to Curb Spying
A group of US Republican senators has introduced a bill to stop app stores from hosting US-based apps that support payments with China’s digital currency. They allege that the digital yuan could be a tool for Beijing to spy on American citizens.
Senators Tom Cotton, Mike Braun, and Marco Rubio are behind what they dubbed the “Defending Americans from Authoritarian Digital Currencies Act”. Introduced on Thursday, they say it will check China’s influence on the US.
The legislation states that companies that own or control app stores “shall not carry or support any app in [their] app store(s) within the United States that supports or enables transactions in e-CNY.”
Senator Cotton fears that the digital yuan could assist the Chinese government with “real-time visibility into all transactions on the network, posing visibility and security concerns for American persons who join this network.”
Following the release of the proposed bill, the Chinese Embassy in Washington described it as “wanton bullying”.
What is the e-CNY?
China first announced plans to develop a digital currency in 2017. Earlier this year, it released a limited pilot version of the currency’s wallet in the lead-up to the Winter Olympics.
The e-CNY is a digital version of China’s fiat money, the yuan. It may be a digital currency, but it is not cryptocurrency. Bitcoin and other crypto operate on a decentralized ledger called a blockchain. Instead, the People’s Bank of China issues and operates the digital yuan.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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