- In relation to the use of digital yuan, three Republican senators raising opposition mentioned worries about privacy and security
- Legislators pointed out that the CCP can employ e-CNY as a monitoring instrument
- China has positioned its proposed CBDC as one which will make user-friendly and safe transactions without having to utilize banking services
Three U.S. senators urgently requested that American athletes not receive or use digital yuan during the Beijing Olympics by a United States Olympic and Paralympic Committee. They warned that raising numerous concerns, including privacy, “The digital yuan should be utilized by Olympic athletes to monitor Chinese residents and visitors to China on an unprecedented scale.
American senators raise concerns about the Digital Yuan in China
Three senators from the US submitted a letter on the issue of digital yuan on Monday to Susanne Lyons, the chairman of the US Paralympic and Olympic Committee (USOPC) board. “We are writing to voice our concerns about the Chinese Communist Government’s plans to formally debut Digital Currency Electronic payment, known as the digital Yuan, prior to the Beijing Winter Olympics in 2022, Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis stated. Specifically, they encourage the United States Olympic & Paralympic Committee (USOPC) to prohibit the reception and use of digital yuan by U.S. competitors at the Beijing Olympics.
The digital yuan, the PBOC, is completely controlled by the CBDC and can be monitored and recorded by the central bank, claimed the senators. In certain towns and companies, the Chinese government has already started to test and distribute digital yuan as a means of payment. Also, the white paper has been presented for the digital yuan.
The Senators pointed out that the Communist Party of China insists on digitizing banknotes and coins. However, they have warned that Olympic athletes must know that a digital yuan can be used to track Chinese citizens and visitors to China on an unprecedented scale, in the hope that they will preserve and continue to use digital yuan wallets on their smartphones when they return.
The letter goes further: China’s digital currency is integrated into global trade with numerous problems relating to privacy. These are not hypothetical worries. Instead, digital payment networks, like WeChat, are already being used to monitor Chinese residents, threaten them and imprison them.
China Digital Yuan Progress Report
Digital Yuan has been developing more rapidly in the past few years, thanks to the People’s Bank of China (PBoC). It is, of course, one of the world’s most advanced CBDC projects. The official Digital Yuan whitepaper was released by PBoC last week. CBDC transactions amounted to $5.3 billion, the Central Bank stated. PBoC also allows travelers, while entering the country, to open digital wallets to further promote the utilization of Digital Yuan.
More than 20,8 million persons opened the virtual wallet according to the official data from PBoC. However, the Digital Yuan continues to be tested. No full use of digital electronic currency payment has been formally confirmed by the Central Bank (DCEP). There were concerns that Chinese CBDC’s rapid expansion could undermine the status quo on the global market of the US dollar as a global reserve currency. Moreover, the Republican senators fear the use of e-CNY as a weapon for surveillance by the CCP.
The senators asked the U.S. Senators for the protection of the privacy of the American athletes from the Chinese Communist Government with the U.S. Department of the State, U.S. Department of Treasury, and the U.S. Commerce. They also asked Senate Committee members for a briefing on this request, within 30 days of the receipt of this letter. They urged them to submit this request.
Speaker Zhao Lijian of the Chinese Foreign Ministry told reporters Tuesday in Beijing that they displayed their ignorance, in response to the behavior of the senators. They recommend that they figure out the genuine nature of the digital currency, he was cited. The US lawmakers should adhere to the spirit of the Olympic Charter, cease making sports a political issue, and end digital currency difficulties in China.