Senator Cynthia Lummis banned US athletes from using the Chinese yuan during the Winter Olympics in Beijing which are scheduled for February 2022 as we can see more in our latest cryptocurrency news today.
The digital yuan is being piloted right now and three senators believe that using the digital yuan further will enable the Chinese state surveillance over their athletes. With this month’s Tokyo Summer Olympics lingering in uncertainty due to COVID, the prominent US lawmakers are looking ahead to the games in the 2022 Olympics. However, they are worried about the spread of it. Bitcoin proponent and senator Cynthia Lummis banned US athletes to use the digital yuan during their time at the Olympics. Along with Senators Marsha Blackburn and Roger Wicker, they sent an open letter to the chair of the US Olympic and Paralympic Committee requesting that it “forbid American athletes from receiving or using digital yuan before the Beijing Olympics.”
China is apparently working towards digitizing the digital yuan.
According to the senators, the digital yuan may be used to surveil the Chinese citizens and those that visit China on an unprecedented scale. The digital yuan is China’s central bank’s digital currency which is a computerized form of its national yuan currency. Now being trailed by 21 million and businesses, the digital currency project is the biggest of its kind in the world. Central Bank digital currencies are akin to stablecoin which is a type of digital currency designed to hold the value relative to other assets but it’s not just like a stablecoin.
Federal Reserve Chair Jerome Powell said that the central bank’s digital currencies will obviate a need for stable coins which is very risky. The leading stablecoins like Tether are backed by debts rather than the roller in a vault which leaves a vulnerability to illiquidity during major financial crises. Fan Yifei, a PBoC deputy governor said his bank is concerned about the speed at which the stablecoins are expanding. By using its own digital currency, China and the people living there can dwarf the reach of commercial stablecoins. While the central bank sees global stablecoins bringing challenges and risks to the international monetary system, Lummis sees China’s digital yuan as the real risk because it is controlled by the state’s bank.
They also pointed to the “Chinese Communist Party” and its use of emerging technologies to suppress the Uyghur minority and those that thrive for freedom of expression.