Republican U.S. lawmakers want to ban app stores from hosting apps that let payments be made with the Chinese digital currency, Reuters reported Thursday (May 26), citing a proposal for legislation seen by the news site.
The bill will state that companies owning or controlling app stores will not be allowed to “carry or support any app … within the United States that supports or enables transactions in e-CNY.”
The report notes that the opposition to the digital yuan is steeped in the suspicion that China’s government could use it to have “real-time visibility into all transactions on the network, posing privacy and security concerns for American persons who join this network.”
Sen. Tom Cotton, the Arkansas Republican who is behind the bill, said digital yuan could possibly pose privacy and security concerns for people.
And according to Washington, D.C., think tank Center for a New American Security, China’s CBDC and electronic payments could be a “boon” for Chinese Communist Party surveillance in the economy, and interference in the lives of Chinese citizens.
On the flip side, some companies are ready for the new currency, with messaging and payment company WeChat saying it would support the digital yuan, as would payment giant Alipay.
See also: CBDCs Give Central Bankers Control When Cash Isn’t King Anymore
PYMNTS wrote about the rising discussions about CBDCs, including the potential for a U.S. one that has been talked about.
The digital dollar, if it’s made, could be a way to get more efficient payments and add more unbanked individuals into the system.
It could also help in fighting off private stablecoins while maintaining the power to control the money supply and the tools to manage inflation and fight economic downturns.
It is particularly timely as the use of cash has been falling. PYMNTS’ November 2021 Digital Economy Payments report said just 13.4% of those surveyed use physical cash.
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