A new housing bill introduced in the US Congress includes a provision that temporarily bans the Federal Reserve (Fed) from issuing digital dollars to consumers until 2030. This development points to a remarkable policy change in the US administration’s approach to central bank digital money (CBDC).
Housing Bill is Progressing in the Senate with Wide Participation
The 21st Century Housing Pathway Act, which was voted on in the Senate, is presented as a bipartisan compromise that aims to increase housing access. The bill also includes provisions to prevent single-family homes from being collected and withdrawn from the market by large financial institutions. 84 senators voted in favor of the law, which was agreed upon by Republican and Democratic senators.
In the 303-page text of the bill, the regulation prohibiting the Fed from developing a digital dollar or a similar digital asset at the individual level was discussed in only two pages. According to the relevant article added to the law, this ban will end at the end of 2030.
“The Board of Governors of the Federal Reserve System or a Federal Reserve Bank may not issue or create central bank digital currency or any similar digital asset at the individual level, directly or through financial intermediaries.”
The Trump administration’s White House stated that it strongly supports the bill in question. According to the statement, if the bill is presented to representation in the same way, the President is expected to sign it.
Effects of the Temporary Ban on the Digital Dollar Debate
The temporality of the CBDC regulation has presented a controversial picture for those who have long opposed the digital dollar issue. In particular, the government’s potential to increase financial surveillance capabilities has raised privacy concerns regarding CBDC among lawmakers.
During the election campaign, Donald Trump clearly stated that he was against the US central bank digital currency. Trump described this initiative as a step that would threaten financial freedoms.
“Such a currency gives the federal government absolute control over your money. They can take your money and you don’t even know.”
The presidential order titled “Strengthening American Leadership in Digital Financial Technology”, published shortly after Trump took office, included articles prohibiting the creation, circulation and use of CBDC in the USA.
However, the 2030 deadline set by the new bill in the Senate has raised questions about whether the ban on digital dollars will be valid in the long term. Some circles consider the limitation of the period to be incompatible with the Trump administration’s previous harsh opposition.
While the law provides temporary protection for individuals concerned about government surveillance, it opens the door to new discussions about digital central bank money in the United States in the future.
