The United States is looking to restrict Google and Apple applications from receiving payments in digital Yuan. I.S. Senators Marco Rubio, Mike Braun, and Tom Cotton sponsored the new bill.
According to reports, the bill disallows companies from supporting payments in China’s CBDC (eCNY). The Republican Senators want two of the leading U.S. companies to comply with the latest guidelines.
Meanwhile, the bill is a precautionary measure to stop companies from hosting apps that support payments in the new Chinese digital currency. Any eCYN payments within the United States are prohibited.
With the new bill, the Senators want to prevent a scenario where Beijing can spy on Americans using the eCYN as a decoy.
Digital Yuan is Not Welcome in the US
A statement from the office of Senator Tom Cotton noted that the Chinese government would have real-time data from America. The digital Yuan will give them access to all transactions on the network.
Accordingly, the office stated that allowing app stores to list applications enabling easy payments could expose Americans’ privacy.
Moreover, the digital Yuan can be used as just a front for China’s surveillance of the United States economy. And the U.S. Congressmen are determined to see the plan fail for its intended purpose.
A think tank group based in Washington, DC, also supports the move by the U.S. Senators. Moreover, the eCYN would be used by the Chinese government to spy on the economy of the U.S.
It further added that transactions contain the exact data of the user’s activities, which China could use.
The U.S. suspects China will spy on Americans using its proxies to transfer classified secrets to Beijing. The Chinese Communist Party is a big-time foe of the United States owing to its daring activities against the interests of the U.S.
Digital Yuan Payment
As revealed by insiders, the new bill results from Google and Apple app stores’ listing of WeChat and Alipay. Both apps are eCNY-affiliated and have been accepting payment in digital Yuan.
As a result, the U.S. Senators want companies operating in the United States to stop hosting listed eCNY-affiliated apps. The new bill aims to prohibit any company accepting payment in Chinese CBDC from complying with the new development.
However, the Chinese embassy has criticized the new bill, calling it another “bully” adopted by the United States. The embassy alleged that the U.S. was hiding behind national security to bully foreign companies.
Central bank digital currencies are gaining traction amongst countries. CBDC could be used to limit the circulation of decentralized digital currencies.
China was the first country to fully develop its central bank digital currency (CBDC), which has since been used. The country bans decentralized digital assets as a measure to protect its economy.
Moreover, the Metaverse is another ecosystem that the Chinese government is interested in joining. Since its emergence, the industry has been a hit with the government, making the Metaverse an area worth considering.
