On March 9th, 2022, U.S. Senators Bill Cassidy, M.D. (R-LA) and Marsha Blackburn (R-TN) introduced regulations for the Say No To Silk Road Act.
The Senators are anticipating the possibility that Russia will use the Chinese Communist Party’s (CCP) Digital Yuan in order to bypass payment systems like SWIFT. With this alternative system, China will then be able to collect personal data on their citizens and any foreigner also using the system.
In a statement from Senator Cassidy, he explains the importance of keeping China accountable for invading the privacy of Digital Yuan users. In the event of a security breach or if the CCP leverages personal details from users in a negative way, the bill will be the first step in preventing such an outcome.
Senator Blackburn also states the adverse effects of allowing China’s Digital Yuan to be left unchecked. “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,” she says.
Regulations in the Say No To Silk Road Act include:
- Developing a report on the Digital Yuan Network.
- Operations of the network within the U.S.
- What kind of information is being collected from users.
- Details on which U.S. companies are helping develop or service the Digital Yuan Network.
- The goals of the network.
- Determining whether or not the network poses any economic or security risks to the United States.
- A report on trade enforcement actions toward the Digital Yuan.
- A report on the effect the Digital Yuan has on trade and investment agreements within China.
- Require any foreign government receiving assistance from the Foreign Military Financing Program to disclose if they use the Digital Yuan as a settlement or reserve currency.
- A public website that will warn U.S. citizens of the dangers involved in using the Digital Yuan.