U.S. Senators Marsha Blackburn (R-Tenn.), Rick Scott (R-Fla.), Ted Cruz (R-Texas), and Representative Blaine Luetkemeyer (R-Mo.) announced the introduction of the Chinese CBDC Prohibition Act to prohibit money services businesses (MSBs) from engaging in any transaction that involves a central bank digital currency issued by the People’s Republic of China—for example the newly-announced Digital Yuan.
Currently, federally licensed MSBs, which include companies like currency dealers, exchangers, and the U.S. Postal Service, are not engaging in transactions involving the digital Yuan, but this bill would preempt potential attempts by MSBs to offer services that would increase usage of Communist China’s digital currency. Representative Luetkemeyer, Chairman of the House Subcommittee on National Security, Illicit Finance, and International Financial Institutions, introduced the legislation in the House of Representatives.
“Once Communist China is in your wallet, they are in your wallet forever. As they search for any open avenue to exploit the United States, we should do everything in our power to ensure Americans are protected financially. This legislation is common sense: U.S. financial services should not engage in any transaction that involves the CCP’s Digital Yuan,” said Senator Marsha Blackburn.
“The digital Yuan is just another tool used by the Chinese Communist Party to spy on its people and all those who use it. It is an obvious power grab and an attempt to increase communist-state-control over people’s personal finances. Secretary Xi and his thugs have no business playing big brother to American citizens and how they spend their money. That is why I am fighting to prevent this problem from ever becoming someone’s reality. We must stand up against the CCP’s obvious spy tactics and pass the Chinese CBDC Prohibition Act today,” said Senator Rick Scott.
“The Chinese Communist Party intends to use a central bank digital currency to spy on Americans’ private financial transactions. We must eliminate the CCP’s underhanded attempts to gain access to American financial data, that threaten their privacy and undermines our national security. This bill prevents the CCP from monitoring American transactions and financial data,” said Senator Ted Cruz.
“The Chinese Communist Party uses the digital yuan to track in real time every transaction made with the currency. It is one of the many ways the CCP maintains its stranglehold on the Chinese people. We must establish clear barriers to prevent the CCP from monitoring the transactions and collecting the financial data of American consumers and businesses. This bill is a necessary step in building those barriers,” said Representative Blaine Luetkemeyer.