![]() ![]() Congress, prospects for the bill's passage ahead of midterm elections are uncertain. While stopping potential national security threats related to China is a rare point of bipartisan agreement in the deeply divided U.S. the infrastructure of its successful domestic mobile payment giants AliPay and WeChatPay to facilitate the accelerating rollout of China's eCNY. The Chinese Embassy in Washington called the legislation "another example of the United States wantonly bullying foreign companies by abusing state power on the untenable ground of national security." Both apps are available in the Apple and Google App stores.Īpple Inc (AAPL.O), Alphabet Inc's (GOOGL.O) Google, Ant Group (688688.SS) and Tencent (0700.HK) did not respond to requests for comment. Alipay, the hugely popular payments app owned by Jack Ma's Ant Group, also accepts the digital currency. The move comes after WeChat, a messaging and payment application owned by China's Tencent with over 1.2 billion users, announced it would begin supporting the currency earlier this year. The Center for a New American Security, a Washington, D.C.-based think tank, said in a January 2021 report that China's digital currency and electronic payments system was "likely to be a boon for CCP surveillance in the economy and for government interference in the lives of Chinese citizens," noting that "transactions will contain precise data about users and their financial activity." The bill, unveiled Thursday and first reported by Reuters, states that companies that own or control app stores "shall not carry or support any app in app store(s) within the United States that supports or enables transactions in e-CNY." It is sponsored by Senators Tom Cotton, Marco Rubio and Mike Braun.Īccording to Cotton's office, digital yuan could provide the Chinese government with "real-time visibility into all transactions on the network, posing privacy and security concerns for American persons who join this network." Most participants are accepting payment using WeChat Pay and Alipay. app stores including Apple and Google from hosting apps that allow payments to be made with China's digital currency, amid fears the payment system could allow Beijing to spy on Americans. China has been at the forefront of a lot of digital trends, partly due to the fact. “Central bank digital currencies can definitely help international payments to be faster and cheaper, but as it’s been said earlier I think we shouldn’t believe that alone it will be the universal cure for our cross border payment frictions,” he said.WASHINGTON, May 26 (Reuters) - Republican senators want to bar U.S. Chinas digital currency, e-CNY, will co-exist with Alipay and WeChat Pay, a Chinese central bank official said. The private sector is supportive of CBDCs’ ability to assist in cross-border payments, but cautious of them being considered a panacea said Frantz Teissedre, head of interbank relations, Societe Generale on the panel. ![]() Per the Peoples Bank of China (PBOC), banks in China handled non-cash mobile payments of 49.27 trillion in 2019, more than 25 percent from the previous year. All of those private sectors definitely have their own life cycle and they may experience outages in some cases … So in order to provide a backup for the retail payments system, the central bank has to step up and be prepared for if any kind of bad thing happens to those private sectors, either in the future or because of financial distress or technical distress.” China has been a relatively cashless society for years, with millions of mobile payment users paying with either Tencents WeChat Pay or Alibabas Alipay every day. “They are both private sector and provide such a significantly important public rules of financial infrastructure to the general public. The function of an eCNY would be to safeguard China’s monetary solvency as retail players such as WeChat Pay and Alipay continue to scale, said Mu. “The two-tier account structure will not be changed and we’re not going to create competition with commercial banks,” he said on the panel. “Figuring out what the central banks does, what the private sector does – this is one of the main goals of our external consultation process right now, to gather input from financial intermediaries who might at some point play a role in a CBDC system.”Ĭhangchun Mu, director of digital currency institute, People’s Bank of China said an electronic Yuan Renminbi (eCNY) – formerly known as a digital currency electronic payment (DCEP) – would operate in tandem with the private sector as a hybrid legal tender. “It would be logical to have some sort of where the private sector plays at least that role, to help with the onboarding of customers and the transfer of value in and out of the system … There’s a big role there, and we’ve spent a lot more time looking at the high level, public policy drivers and some of the basics of the technology and there’s a lot of work left to be done on the business model. Fighting Fraud with Distributed Ledger Technology ![]()
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