FIRST ON THE DAILY SIGNAL — Sen. Rick Scott, R-Fla., on Thursday reintroduced legislation that would prohibit U.S.-based money services businesses from using central bank digital currencies issued by the Communist Party of China, including the digital yuan.
If enacted, the “Chinese CBDC Prohibition Act” would prohibit money services businesses from engaging in any transaction that involves a central bank digital currency issued by the People’s Republic of China.
The bill would apply to entities such as Venmo, Zelle, currency dealers, and the U.S. Postal Service, making it unlawful for them to process such transactions.
“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,” the bill shared with the Daily Signal states.
In a statement to the Daily Signal, Scott argued that allowing U.S. businesses to transact in a Chinese digital currency could expose Americans to surveillance risks and weaken U.S. economic competitiveness. He has long opposed the development and adoption of central bank digital currencies, particularly those linked to foreign adversaries.
“The dollar is the reserve currency of the world and the CCP wants to undermine our leadership with a digital currency they can track and manipulate,” Scott told the Daily Signal. “The digital yuan is just another tool used by the Chinese Communist Party to spy on its people and all those who use it. Americans deserve privacy when it comes to their financial transactions.”
According to the senator, China’s digital currency allows its government to monitor financial activity and potentially restrict access to funds. His legislation seeks to block its use in the United States, citing concerns about privacy, national security, and economic stability.
The bill would make transactions involving Chinese government-issued digital currency unlawful and, according to Scott’s office, is intended to protect American consumers, businesses, and the broader economy.
Scott previously introduced the legislation in 2023, along with Sen. Marsha Blackburn, R-Tenn., and Sen. Ted Cruz, R-Texas, upon the announcement of the Chinese digital yuan.
“The digital yuan is just another tool used by the Chinese Communist Party to spy on its people and all those who use it. It is an obvious power grab and an attempt to increase communist-state-control over people’s personal finances,” Scott said at the time. “Secretary Xi and his thugs have no business playing big brother to American citizens and how they spend their money.”
“That is why I am fighting to prevent this problem from ever becoming someone’s reality. We must stand up against the CCP’s obvious spy tactics and pass the Chinese CBDC Prohibition Act today,” Scott added.
