US Senate Banking Committee member Pat Toomey urged Treasury Secretary Janet Yellen and Secretary of State Anthony Blinken to look into China's use of the digital yuan at the Olympics. According to him, eCNY poses a threat to the interests of the US economy and national security.
The Winter Olympic Games kicked off in Beijing and gave an actual start to the use of CBDC by an international audience - eCNY was approved as a means of payment for guests and residents of the Olympic Village. Domestically, the digital yuan has been tested since 2019.
The senator noted that eCNY can be an effective tool for circumventing US sanctions and conducting illegal transactions. In addition, the PRC authorities will have “more opportunities for non-compliance with international financial rules and a “first mover” advantage in setting standards in global digital payments.”
Toomey is also concerned about Beijing's launch of the state-owned blockchain platform BSN, which will be the technological backbone of the Belt and Road Initiative.
Despite the interest in distributed ledger technology, the CCP sees cryptocurrencies as a threat to "digital authoritarianism," which gives the United States a chance to become a leader in innovation in this area, the senator stressed. As a support, he named the freedom of the individual and other principles shared by the country.
Toomey suggested holding a special briefing on the digital yuan on March 7th.