Tensions are rising between US lawmakers and Chinese officials. Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis have written a letter to the US Olympic Committee (USOPC). The trio argues that the digital yuan is a surveillance tool and would like to ban US athletes from using it. Obviously, this did not please China, and its response was not long in coming.
No politics at the Olympics!
At a press conference on 20 July, Chinese Foreign Ministry spokesman Zhao Lijian addressed the senators’ warning letter. He pointed out the ignorance of the senators and urged them not to make waves:
“US politicians should abide by the spirit of the Olympic Charter, stop making sport a political issue, and stop creating conflicts over digital currency in China.”
This indirect altercation between China and the United States is reminiscent of Russian-American tensions over repeated computer attacks. More than 30 years after the fall of the Berlin Wall, China, Russia and the US are clashing on new fronts. Russia is complacent about hacker groups, which undermines the US infrastructure. Moreover, with the withdrawal of US troops from the Middle East, Russia has now become the key player in the region.
China, for its part, has changed its strategy under the impetus of Xi Jinping. The Middle Kingdom is now focusing on creating partnerships with emerging countries and over-dominating the world economy. At the same time, it has put forward a cultural “soft power” to extend its influence.
The Winter Olympics: a showcase for the digital yuan
As a reminder, at the Boao Forum for Asia in April, the deputy governor of the People’s Bank of China (PBoC), Li Bo, said:
“For the upcoming Beijing Winter Olympics, we have tried to make the e-CNY [digital yuan] available not only to domestic users but also to international athletes and visitors.”
During the 2022 Winter Olympics, vending machines and shops will issue portable payment devices, which will allow easy use of the digital yuan. In fact, Chinese citizens have already created more than 20.8 million virtual wallets to use the crypto-yuan.
The PBoC has not yet confirmed a timetable for the full rollout of digital currency electronic payments, but it has confirmed that 34.5 billion yuan ($5.3 billion) has already been spent in 70.8 million transactions. However, one question remains: will the digital yuan be anonymous?
Want to stay updated on a daily basis?