U.S. Sens. Marsha Blackburn (R-TN) and Bill Cassidy (R-LA) this week introduced legislation that would set new regulations and guidelines on the Chinese Communist Party’s (CCP) digital yuan, which was introduced in January by the Chinese Central Bank.
The CCP’s digital currency could allow countries such as Russia to bypass global financial systems like the Society for Worldwide Interbank Financial Telecommunications (SWIFT) and empower the CCP to collect personal data on users, the lawmakers said.
“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,” Sen. Blackburn said. “This legislation provides the United States with more information about the digital yuan to hold the new Axis of Evil to account.”
Sen. Blackburn sponsored the Say No To the Silk Road Act, S. 3784, with eight original GOP cosponsors, including Sen. Cassidy and U.S. Sen. Todd Young (R-IN).
If enacted, S. 3784 would require the U.S. Commerce Secretary to report to relevant congressional committees on the Blockchain-Base Service Network and provide recommendations related to the report, and to report on trade enforcement actions regarding the digital yuan, according to a bill summary provided by the lawmakers.
“China’s digital yuan allows the CCP to collect personal data on their own citizens and foreign users alike,” Sen. Cassidy said. “This bill holds China accountable as they introduce their new digital currency.”
Additionally, S. 3784 would require the U.S. State Department to issue a warning on the digital yuan and require the U.S. Trade Representative to report on the effect of the digital yuan on trade and investment agreements, according to the lawmakers’ summary.
Also under the bill, any foreign government that receives assistance through the Foreign Military Financing Program would be required to disclose if the government uses digital yuan as a settlement or reserve currency, among other provisions.