For lawmakers, the digital yuan provides no privacy and is fully traceable.
They assure that it is an “unprecedented” surveillance of all citizens.
A group of United States senators recommended that athletes from that country not use the digital yuan during the Beijing 2022 Winter Olympic Games. In this regard, they asked the country’s Olympic and Paralympic Committee (USOPC) to prohibit its use by athletes. athletes.
The suggestion came through an official statement from legislators addressed to the president of the USOPC, Susanne Lyons. In the letter signed by Senators Marsha Blackburn, Roger Wicker and Cynthia Lummis, they express their “concern about the intention of the Communist government of China to launch its Electronic Payment method with Digital Currency, better known as the digital yuan.”
The digital yuan is a central bank digital currency (CBDC) that is gradually taking shape in China, as CriptoNoticias has reported. However, US lawmakers argue that this currency “can be tracked by the central bank.” In this way, the Chinese government can get precise details of what is being bought with these assets and at what time and place. It would be, say the senators, an “unprecedented” surveillance of Chinese and foreign citizens for which athletes should be warned.
In particular, US lawmakers, including Cynthia Lummis, a renowned bitcoiner from the state of Wyoming, warn about the lack of privacy of the currency. This is something that is being evaluated in China while progressing with the wallet projects that will support this digital currency. Anonymity can only be ensured up to a one-time payment limit of 2,000 yuan so far; to raise the limit, a verification with identity document and bank account is required.
Ultimately, the US lawmakers’ statement urges the USOPC to collaborate with the State Department, the Treasury Department and the Commerce Department to “protect the privacy of American athletes (sic) from the communist government of China.”
Marsha Blackburn expressed her rejection of the digital yuan on Twitter. Source: Twitter.
The digital yuan, a controversial project
This is not the first time that US officials have voiced their distrust of the Chinese government’s digital currency project. In May 2021, a former Central Intelligence Agency (CIA) analyst warned that this CBDC it could be used to impose economic retaliation.
On the other hand, the issue of privacy has been discussed in the past. In this regard, the president of the central bank of China himself stated that it is not possible to provide greater privacy when using this CBDC. According to the official, this has to do with the laws for the prevention of money laundering and the financing of terrorism, which require that users identify themselves before starting to carry out large transactions with these digital means of payment.