March 11, 2022

Young Supports Effort to Establish Reporting Standards for China’s Digital Yuan

WASHINGTON – U.S. Senators Todd Young (R-Ind.) and Marsha Blackburn (R-Tenn.) introduced the Say No to the Silk Road Act to require new standards and guidelines for the Chinese Communist Party (CCP) Central Bank’s digital currency, the Digital Yuan. The Digital Yuan could allow countries like Russia to bypass specialized financial messaging systems such as SWIFT and empower the CCP to further violate the rights of their citizens.

 

“China hopes its centralized digital currency and blockchain networks will provide new opportunities for financial surveillance and control,” said Senator Young. “Our bill will take steps now to understand these risks and identify ways to protect the American people and the international financial system from this dystopian vision. Fostering American private sector innovation in digital finance is the solution, not Chinese Trojan horses.”

 

“Under Joe Biden’s failed leadership, the new Axis of Evil is thriving,” said Senator Blackburn. “If left unchecked, technologies including China’s Digital Yuan will empower Russia to evade global sanctions on systems such as SWIFT and enable the CCP to further surveil and threaten their citizens. This legislation provides the United States with more information about the Digital Yuan to hold the new Axis of Evil to account.” 

 

Senators Young and Blackburn are joined by Senators Ted Cruz (R-Texas), Cynthia Lummis (R-Wyo.), Mike Braun (R-Ind.), Rick Scott (R-Fla.), Bill Cassidy (R-La.), Cindy Hyde-Smith (R-Miss.), and Tommy Tuberville (R- Ala.) on this legislation.

 

The Say No to the Silk Road Act would:

  • Require the Department of State to issue a warning on the Digital Yuan.
  • Require the Secretary of Commerce to report to relevant Congressional committees on the Blockchain-Base Service Network and provide recommendations related to the report.
  • Require the Secretary of Commerce to report on trade enforcement actions with respect to the Digital Yuan.
  • Require United States Trade Representative to report on the effect of the Digital Yuan on trade and investment agreements.
  • Require Office of Management and Budget to develop standards and guidelines for agencies that transfer, store, or use Digital Yuan.
  • Require that any foreign government that receives assistance through the Foreign Military Financing Program to disclose if the government uses Digital Yuan as a settlement or reserve currency.

 

Senator Young has been outspoken about the Chinese Communist Party’s human rights abuses and its exploitation of American businesses. Earlier this year, he launched his #BeijingBehavingBadly campaign to ensure China’s bad behavoir does not go unchecked.

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