The bill seeks to amend existing laws under Title 31 of the United States Code, specifically targeting money services businesses. If passed, it would create a prohibition against these businesses from partaking in transactions involving the Chinese CBDC. This legislation addresses national security concerns by asserting that allowing the use of China's CBDC could undermine the United States' financial systems and sovereignty, as well as aid in evading international sanctions.
Summary
SB3248, titled the 'Chinese CBDC Prohibition Act of 2023', aims to prevent money services businesses in the United States from engaging in any transactions involving a central bank digital currency (CBDC) issued by the People's Republic of China. This legislation is rooted in concerns regarding the control and surveillance capabilities that such a digital currency could enable for the Chinese government, highlighting the potential for increased data collection on citizens and the reinforcement of its social credit systems.
Contention
Opposition may arise from various stakeholders who argue that the bill could have unintended consequences on international financial relations and operational flexibility for American businesses involved in global finance. Furthermore, it raises questions regarding the practicality of enforcing such a prohibition, especially as digital currencies become more pervasive and complex. Critics may highlight concerns of overreach, suggesting that this prohibition could potentially stifle innovation in the U.S. digital currency landscape, where regulatory clarity is still evolving.
A resolution supporting the United States dollar as the reserve currency of the world and combating the economic influence of the People's Republic of China.