U.S. Senators Bill Cassidy and Marsha Blackburn today introduced the ‘Say No To the SilkRoad Act’ to set new regulations and guidelines on China’s new Central Bank Digital Currency (Digital Yuan).
The official press release reads that in January 2022, the Chinese Central Bank introduced the digital Yuan which could allow countries like Russia to bypass global financial systems like SWIFT and allow the Chinese Communist Party (CCP) to collect personal data on users.
In Brief:
- The ‘Say No To the SilkRoad’ Act explains that the digital currency of China is built on blockchain technology.
- Consequently, it gives China more power over its traditional financial system.
- The other co-sponsor of this legislation are Senators Todd Young, Ted Cruz , Mike Braun, Cynthia Lummis, Cindy Hyde-Smith, Rick Scott, and Tommy Tuberville.
The act requires new standards and rules for the digital currency and instructs any foreign government that receives assistance through the Foreign Military Financing Program to disclose if the government uses Digital Yuan.
It also requires the Secretary of Commerce to report on trade enforcement actions with respect to the digital yuan. It also demands the Office of Management and Budget to develop standards and rules for agencies that transfer, store, or use digital yuan.
The introduction of this new legislation explains that the Digital Yuan is built on blockchain technology and as a consequence, gives China more power over its financial system.
Dr. Cassidy said, “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 explained that technologies including China’s Digital Yuan(if not checked) will empower Russia to evade global sanctions on systems such as SWIFT and enable the CCP to further surveil and threaten their citizens.
Cassidy and Blackburn are joined by Senators Todd Young, Ted Cruz, Cynthia Lummis, Mike Braun, Rick Scott, Cindy Hyde-Smith and Tommy Tuberville.
China’s Digital currency has been quite strong right from its launch. Recently, to boost the digital yuan Tencent, a Chinese technology giant, had updated its WeChat Pay wallet to include support for the country’s digital yuan.
