Chinese CBDC Prohibition Act of 2023

Subjects: Finance and Financial Sector

Summary:  <p><b>Chinese CBDC Prohibition Act of 2023 </b></p> <p>This bill prohibits money services businesses (e.g., currency exchange providers or money order issuers) from engaging in transactions involving a central bank digital currency issued by China. Central bank digital currencies are digital currencies issued by a government-backed central bank. </p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 804 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 804

To prohibit money services businesses from engaging in any transaction 
 that involves a central bank digital currency issued by the People's 
               Republic of China, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 2023

 Mr. Luetkemeyer introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To prohibit money services businesses from engaging in any transaction 
 that involves a central bank digital currency issued by the People's 
               Republic of China, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chinese CBDC Prohibition Act of 
2023''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 2021 testimony before the House Committee on 
        Financial Services, Yaya Fanusie, Adjunct Senior Fellow at the 
        Center for a New American Security, noted that China is pushing 
        aggressively to become a global leader in financial technology, 
        and the People's Republic of China is in a position to launch 
        the largest digital currency project of any major economy. 
        Additionally, the Chinese central bank digital currency (CBDC) 
        will provide the Chinese Communist Party (CCP) with data on its 
        users, and bolster the CCP's social credit program, ultimately 
        furthering the Party's punitive control power over Chinese 
        citizens.
            (2) On April 28, 2021, Federal Reserve Chairman Jerome 
        Powell stated, ``The [digital] currency that is being used in 
        China is not one that would work here. It's one that really 
        allows the government to see every payment for which it is used 
        in real time''.
            (3) According to Sir Jeremy Fleming, Director of the United 
        Kingdom's Government Communications Headquarters, ``Control is 
        also a major driver for Beijing as it seeks to build a 
        centralized digital currency. Yes, it introduces efficiencies 
        and new ways of settling payments. But the way it's being 
        implemented allows the monitoring of citizens and it forces 
        companies to use the service. It might, in future, also enable 
        China to partially evade the sorts of international sanctions 
        currently being applied to Putin's regime in Russia''.

SEC. 3. MONEY SERVICES BUSINESSES.

    Subchapter II of chapter 53 of title 31, United States Code, is 
amended by adding at the end the following:
``Sec. 5337. Money Services Businesses
    ``(a) Transactions Involving Digital Currency of the People's 
Republic of China.--Each money services business is prohibited from 
engaging in any transaction, directly or indirectly, that involves a 
central bank digital currency issued by the People's Republic of China.
    ``(b) Definitions.--The term `money services business' has the 
meaning given the term in section 1010.100(ff) of title 31, Code of 
Federal Regulations.''.
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