Chinese CBDC Prohibition Act of 2023

HR 804, the Chinese CBDC Prohibition Act of 2023, prohibits U.S. money services businesses (such as banks and payment processors) from handling transactions involving China's central bank digital currency (CBDC). The bill directly affects financial institutions operating in the United States by banning any direct or indirect involvement with the People’s Republic of China’s digital currency. Its key mechanism, added to Title 31 of the U.S. Code, explicitly forbids these businesses from engaging in any transaction related to China’s CBDC. The legislation aims to limit U.S. financial system involvement with a digital currency viewed by its proponents as enabling Chinese government surveillance and control over citizens.