Chinese CBDC Prohibition Act of 2023

Bill: 118-s-3248
Sponsor: full_name: Sen. Scott, Rick [R-FL]
Introduced: 2023-11-08
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-11-08
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-11-08
action_desc: Introduced in Senate
text: <html><body><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></body></html>

tv_txt: II 118th CONGRESS 1st Session S. 3248 IN THE SENATE OF THE UNITED STATES November 8, 2023 Mr. Scott of Florida (for himself, Mr. Cruz , and Mrs. Blackburn ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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.

1. Short title This Act may be cited as the Chinese CBDC Prohibition Act of 2023 . 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 the People's Republic of 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 will provide the Chinese Communist Party with data on its users, and bolster the social credit program of the Party, ultimately furthering the punitive control power of the Party over Chinese citizens. (2) On April 28, 2021, Jerome Powell, Chairman of the Board of Governors of the Federal Reserve System, 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 Government Communications Headquarters of the United Kingdom, 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. . 3. Money services businesses (a) In general Subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the end the following: 5337. Money services businesses (a) Definition In this section, the term money services business has the meaning given the term in section 1010.100 of title 31, Code of Federal Regulations. (b) Transactions involving digital currency of the People's Republic of China No money services business may engage in any transaction, directly or indirectly, that involves a central bank digital currency issued by the People’s Republic of China. . (b) Technical and conforming amendment The table of sections for subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the end the following: 5337. Money services businesses. .