U.S. Republican Congressman Introduces ‘H.R.804-Chinese CBDC Prohibition Act’

On February 2, 2023, Republican Congressman Blaine Luetkemeyer introduced H.R.804 – the Chinese CBDC (Chinese Central Bank Digital Currency) Prohibition Act, which prohibits the use of the Chinese Central Bank Digital Currency, also known as the Digital Yuan, by U.S. licensed money service businesses(MSBs). It is reported that the U.S. Missouri Republican Congressman Blaine Luetkemeyer introduced the bill, recently appointed as Chairman of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions, as well as a member of the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party(CCP).

According to the bill, a prohibition was added on the federally licensed Money Service Businesses from engaging in any transaction that involves a central bank digital currency issued by the People’s Republic of China. The term “Money Service Business” includes any entity doing business as a currency dealer or exchanger, check casher, issuer of travelers checks or money orders, money transmitter, and the U.S. postal service. Penalties for violation of this law include civil fines of up to $100,000 and criminal penalties of up to five years in prison.

Chairman Luetkemeyer stated that the CCP uses digital yuan to track in real time every transaction made with the currency. It is one of many ways the CCP maintains its dictatorship of the Chinese people; and the U.S. must establish clear barriers to prevent the CCP from monitoring transactions and collecting the financial data of American consumers and businesses.