A CBDC ban language in a Senate housing package would bar the Federal Reserve from issuing a U.S. digital dollar for four years, even though no active plan exists.
Senate adds CBDC ban to housing legislation
Legislative summaries and committee releases say the measure would stop the Federal Reserve from issuing, creating, or indirectly distributing any central bank digital currency “widely available to the general public” until December 31, 2030. The provision was included in the 21st Century ROAD to Housing Act, which passed the Senate Monday by an 85 to 5 vote.
Republican lawmakers argue that CBDCs could enable state surveillance and have sought to prevent the United States from following European or Chinese frameworks. If the House approves the bill and President Donald Trump signs it, the CBDC language would become federal law with the housing package.
Temporary digital dollar restriction follows Trump order
The restriction would not be permanent. If enacted, it would expire at the end of 2030. In January, Trump directed his administration not to pursue a CBDC, saying it could threaten privacy rights and financial system stability.
Trump allies in Congress added an amendment to the housing bill that would block the Federal Reserve System from creating a CBDC or similar digital asset through financial intermediaries. The Federal Reserve has said a U.S. digital currency remains only a theoretical research subject.
That position contrasts with Europe and China, where government-backed digital currency projects have advanced further. Europe is preparing to test a digital euro next year before a full launch in 2029. China has continued developing its digital yuan under the People’s Bank of China.
Former Fed Chair Jerome Powell said any digital dollar would be issued through private banks, countering Republican concerns about direct government control. New Fed Chair Kevin Warsh told lawmakers during his nomination hearing that he does not support a U.S. CBDC, calling it a “bad policy choice.” House lawmakers could approve the package as early as Tuesday.
South Korea and Europe advance CBDC work
South Korea is moving its CBDC work into a second phase led by the Bank of Korea. The pilot now focuses on placing deposit tokens inside banking systems after earlier retail tests.
Participating banks will add e-wallets, voucher tools, and blockchain functions to core banking operations. Authorities want to test whether central bank-guided tokens can handle payments and settlements within the banking infrastructure.
The European Parliament approved the digital euro in February, calling it “necessary” for monetary independence and smoother retail payments. The ECB spent March and April on technical work for the digital euro and tokenized cash systems, with launch dependent on legislation.
