China’s Digital Currency Could Subvert US Sanctions, Enhance Surveillance Capabilities – Regulation Bitcoin News
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A U.S. senator has warned about China’s central financial institution digital forex. “Analysts have raised the eCNY’s potential to subvert U.S. sanctions, facilitate illicit money flows, enhance China’s surveillance capabilities, and provide Beijing with ‘first mover’ advantages,” the senator knowledgeable Treasury Secretary Janet Yellen.
U.S. Senator Warns About the Threat From China’s Central Bank Digital Currency
U.S. Senator Pat Toomey despatched a letter to Treasury Secretary Janet Yellen and Secretary of State Tony Blinken final week elevating issues about China’s central financial institution digital forex, the digital yuan.
“I write to request your engagement on a momentous development in Beijing this week: the rollout of the world’s first major central bank digital currency (CBDC) to a foreign audience,” he informed Yellen and Blinken.
“While the United States is still evaluating the concept of a digital dollar, China is using the Beijing Winter Olympics as an international test for the digital yuan (eCNY), which has been piloted domestically since 2019,” the lawmaker from Pennsylvania described, elaborating:
Analysts have raised the eCNY’s potential to subvert U.S. sanctions, facilitate illicit cash flows, improve China’s surveillance capabilities, and supply Beijing with ‘first mover’ benefits, similar to setting requirements in cross-border digital funds.
The senator famous that “Beijing has also launched the first state-backed global distributed ledger infrastructure, the Blockchain-based Services Network (BSN).”
Furthermore, Senator Toomey commented on China’s cryptocurrency crackdown, stating: “China’s crackdown presents an opportunity for the United States to be the forerunner of crypto innovation, grounded in individual freedom, and other American and democratic principles.”
The senator continued:
Given the potential menace to U.S. financial and nationwide safety pursuits, I request that the Treasury and State Departments carefully look at Beijing’s CBDC rollout throughout the Olympic Games.
Senator Toomey additionally requested info on 9 areas to be supplied to his workplace by March 7.
They embody how the digital yuan was distributed, methods employed to advance eCNY adoption by Chinese and non-Chinese individuals, eCNY adoption price by foreigners, whole issuance of the eCNY after the Olympic Games, classes for the U.S. authorities, and attainable challenges to U.S. pursuits.
In January, China’s central financial institution, the People’s Bank of China (PBOC), revealed that the digital yuan now has greater than 261 million customers, and transactions price virtually $14 billion have been made utilizing the central financial institution digital forex. Last week, China designated 15 nationwide pilot zones and 164 entities for blockchain initiatives.
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