Chinese CBDC Prohibition Act of 2026

The Chinese CBDC Prohibition Act of 2026 bans money services businesses in the United States from conducting any transactions involving the central bank digital currency issued by the People's Republic of China. This law directly affects financial institutions, such as banks and money transfer operators, by prohibiting them from processing payments, deposits, or exchanges related to this specific digital currency. The prohibition applies to both direct and indirect transactions, ensuring that no U.S. entity can facilitate the use of the Chinese digital currency within the regulated money services sector. By adding a new section to the existing U.S. Code, the bill creates a clear legal barrier to prevent the integration of this foreign digital currency into the American financial system.