Friday, October 7, 2022

US Senators Draft a Bill to Discourage China’s e-CNY from App Stores

Three American Senators have just introduced a bill that discourages the patronage of Chinese e-CNY from app stores within its borders. According to the bill, this move becomes imminent because the Chinese virtual currency poses a threat to the US and the dollar.

Senator Tom Cotton, accompanied by Mike Braun and Marco Rubio, all Republican senators, presented the bill to the congress. They cited in the bill dubbed ‘‘Defending Americans from Authoritarian Digital Currencies Act’’ that all app stores owners are to desist from staging the digital Yuan as medium of transaction across the territory of the United States.

Being that China has an elaborate commercial market that serves the world at large, its digital yuan soon gained relevance after its trial phase gained momentum in 2021. It is one of the first CBDCs that was designed in the world.

The virtual currency, strongly sponsored by the supreme leader of China, Xi Jinping overtook Visa cards as a regular transaction method at the Olympic Games in Beijing earlier this year.

Instead of the United States Dollar-backed payment card, the e-CNY dominated as the only recognized medium of payment all through the scheduled time of the global sports competition.

A report by CryptoMarketsBeat in March also noted that the digital Yuan is projected to overtake the US dollar in approximately 15 years to come if necessary precautions are not taken by the United States authorities.

In the report, a financial technology expert, Richard Turrin made the projections, adding that, the economies of the world should also team up and cut down on the reliance of the US dollar. This is to reduce the dominance of the dollar in the global market and promote diversity using other currencies.

The e-CYN is however gradually permeating the United States online platforms, a feat that the newly introduced bill will soon halt.

Furthermore, Senator Braun noted that the “authoritarian regime” of the Chinese government should not be allowed to gain relevance in the US, robbing its citizens of their confidential information. Hence becoming a threat to the security of the nation.

It remains undecided when, if at all the bill will be approved and integrated into the law of the United States. 

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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