‘Say No to the Silk Road Act’ intended to ward off digital yuan use to help Russia evade war sanctions, increase Chinese surveillance of users.
On Wednesday, U.S. Senator Cindy Hyde Smith (R-MS) announced support of the Say No to the Silk Road Act, which would require new standards and deadlines for dealing with the Chinese Communist Party (CCP) Central Bank’s digital currency.
“The introduction of a Chinese digital currency raises all sorts of red flags considering the historic willingness of the Chinese Communist Party to monitor and control everything. This legislation represents responsible actions our government should be taking now to better understand, prepare for, and manage the risks associated with the CCP blockchain and digital currency,” Senator Cindy Hyde-Smith said.
The Say No to the Silk Road Act (S.3784) would require the U.S. Department of State to issue a warning on the digital yuan and would require any foreign government that receives Foreign Military Financing Program assistance to disclose if it uses digital yuan as a settlement or reserve currency.
The legislation also requires:
- The Secretary of Commerce to report to relevant congressional committees on the Blockchain-Base Service Network and provide recommendations related to the report.
- The Secretary of Commerce to report on trade enforcement actions with respect to the digital yuan.
- The U.S. Trade Representative to report on the effect of the digital yuan on trade and investment agreements.
- The White House Office of Management and Budget to develop standards and guidelines for agencies that transfer, store, or use digital yuan.
U.S. Senator Marsha Blackburn (R-TN) authored and introduced the bill. In addition to Hyde-Smith, Senators Todd Young (R-IN), Ted Cruz (R-TX), Cynthia Lummis (R-WY), Mike Braun (R-IN), Rick Scott (R-FL), Bill Cassidy (R-LA), and Tommy Tuberville (R-AL) are additional cosponsors.
You can view a full copy of the Say No to the Silk Road Act (S.3784) below.