US senators propose banning apps that support digital yuan payments from app stores

US lawmakers have proposed a bill banning app stores from hosting apps that support the digital yuan as a payment method. Google and Apple’s app stores are the main targets of the bill.

According to a Reuters report, three Republican congressmen made the proposal: Sen. Tom Cotton (R-Ark.), Marco Rubio (R-Fla.) and Mike Braun (R-Ind.). Lawmakers say in the bill that e-CNY would eventually allow China to spy on Americans.

According to Cotton’s office, the China Central Bank’s (CBDC) digital currency could provide the Chinese government with “real-time visibility into all transactions on the network, which poses privacy and security concerns for American people. who join this network”.

The bill states that companies that own or control app stores “shall not offer or support any app in [their] app store(s) in the United States that supports or enables e-CNY transactions. »

Currently, several popular Chinese apps that plan to allow the use of digital yuan as a payment method, including WeChat and Alipay, are available in Google and Apple app stores in the United States.

The bill is not unexpected as the United States has long harbored suspicions about China’s CBDC. Earlier, the Center for a New American Security, a US think tank, said e-CNY has the potential to help the Chinese government interfere in the lives and economy of its citizens.

Reuters reports that the Chinese Embassy in the United States called the legislation an example of the U.S. bullying antics against foreign companies. The embassy accused the United States of “abusing state power for the untenable motive of national security.”

China and the U.S. progress with their CBDCs

The Chinese CBDC is still at an early stage of adoption. Last month, China successfully tested the system for use in paying taxes and other charges in several cities. The country plans to carry out more tests and deployments during the upcoming Asian Games.

Meanwhile, in the United States, the development of a CBDC has not even begun. Although the United States has thought a lot about it. In January, the Federal Reserve Bank of the United States released its report to examine the pros and cons of a state-backed digital currency.

In the report titled “Money and Payments: The US Dollar in the Age of Digital Transformation,” the Fed said it does not favor any particular outcome when it comes to a digital dollar. However, he acknowledges the benefits CBDC could bring. In testimony before Congress this week, Fed Vice Chairman Lael Brainard defended that position.

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