Senator Bill Cassidy said this policy would hold China accountable for implementing its new digital currency.
Nine Republican senators backed up a policy focused on managing US government agency policy around the possibility that China’s digital yuan could become a tool to avoid economic punishments and compromise user data.
In an announcement made this Wednesday, Louisiana Sen, Bill Cassidy, and Tennessee Sen, Marsha Blackburn, backed up by other Republican senators, advanced the “Say No To the Silk Road Act.” Silk Road” is new legislation that would need various government entities to disclose information about China’s central bank digital currency.
Both senators expressed their dismay about primary elements like privacy in China’s launch of the CBDC, both for its citizens and users residing outside the Asian nation.
If the legislation receives its approval, the Secretary and the US Trade Representative will launch a report highlighting the effects of the digital yuan on international operations and the enforcement procedures they would apply in the sector while at the same time, the State Department will deliver a statement to warn about the CBDC.
The legislation would also contain conditions for the Office of Management and Budget to create guidelines for entities using the currency and foreign governments that acquire financial support for their armed forces to disclose whether they are using the Chinese CBDC.
Russia is currently struggling with US and EU financial punishments that kind of cornered its economy; some reports mentioned that the country could ask for China’s help by using payment structures such as UnionPay. Many lawmakers have expressed concern about cryptocurrencies being a lifesaver for Russia to avoid these sanctions.
On Wednesday, US President Joe Biden revealed that he led an executive order to set up a regulatory framework for digital assets, mentioning their crucial role in avoiding these series of sanctions.
Republican lawmakers seem to command a ruthless fight against China’s CBDC, as it could represent a menace for dollar reign. Senator Blackburn and Cynthia Lummis issued a letter in July 2021 suggesting Olympic officials prohibit US athletes from using the digital yuan during the Olympic Games.
Reports indicated that few foreign athletes went to digital assets during the event, where Visa was also active.
The Olympics would have become the first tangible chance for tourists and Chinese citizens to be aware of the digital yuan; that opportunity vanished when the Chinese government set up restrictions over Olympic spectator numbers.
The media highlighted that at least 11,000 people would get separated from the Chinese population, and foreign visitors and Chinese outside of it would not be able to attend the matches.
By: Jenson Nuñez
