Congress Cautions Athletes Against Using Digital Yuan at Olympics

The Digital Yuan Debacle at the Olympics

With the Beijing 2022 Winter Olympics officially kicking off, all eyes are on the athletes, but some politicians are peering a bit closer at the currency they might be using. Yes, we’re talking about the digital yuan, China’s shiny new central bank digital currency (CBDC) that’s causing quite a stir.

Senator Toomey Sounds the Alarm

Pennsylvania Senator Pat Toomey took it upon himself to pen a letter to two of the biggest names in the U.S. government—Secretary of State Antony Blinken and Treasury Secretary Janet Yellen. He expressed concerns that the Olympics could serve as a global stage to promote the adoption of the digital yuan, potentially putting U.S. interests at risk.

Cross-Border Concerns

Toomey argued that the presence of foreign athletes using the digital yuan might help create a standard for international payments. It’s more serious than it sounds. In his words, this could pose a “significant domain of strategic competition” with China. Meanwhile, the Federal Reserve has been flirting with the idea of a digital dollar, but so far, it’s been more of a casual date than a committed relationship.

Warnings from the Hill

But Toomey isn’t alone in his concerns. Minnesota Representative Tom Emmer added his own flair of warning to athletes, urging them not to accept or use the digital yuan while in China. Emmer has previously labeled China as a bastion of “digital authoritarianism” and suggested legislation to keep the Federal Reserve from having too much fun with a digital dollar.

A Plea to Olympians

“Good luck to all the @TeamUSA athletes competing in the Olympics. Word to the wise – Do. Not. Accept. Any. Digital. Yuan.”

Surveillance or Safety?

Back in July, three senators claimed that the Chinese Communist Party might leverage the digital yuan for surveillance on athletes during their stay and even after their return to the U.S. As a precaution, the U.S. Olympic and Paralympic Committee suggested athletes leave their smartphones stateside, opting instead for “burner” phones to keep their private data safe. Nothing says “I’m here for the games” like a no-frills flip phone!

The Numbers Speak

The Beijing 2022 Winter Olympics marks an innovative testing ground for the digital yuan. Since its inception almost two years ago, this digital currency has seen transactions exceeding $13 billion, with a staggering 10 million merchants already accepting digital yuan payments. So while our athletes take to the ice and snow, a big round of applause goes to the complex financial maneuvers behind their backs!