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.

The post CBDC ban in Senate housing bill could pause digital dollar until 2030 first appeared on Coinfea.

Chief Executive Officer of HKMA Eddie Yue shared the plans in his latest article, which featured the achievements that the agency had made so far in its “Fintech 2025” strategy. Yue also talked about the future direction of the initiative, which looks to establish Hong Kong as a global fintech leader.

Hong Kong set to advance its CBDC strategy

According to Yue, “Financial infrastructure is a highway, enabling capital and financial assets to travel safely and efficiently through our economy.” He also pointed out the need to build this financial infrastructure, stating, “For Hong Kong’s digital economy to thrive, not only do we need the above-mentioned ‘soft infrastructure,’ robust financial ‘hard infrastructure’ is equally crucial.

Presently, Hong Kong does not lack the needed infrastructure, with the country currently running the Real Time Gross Settlement (RTGS) system, which operates across four currencies. In addition, its Faster Payment System (FPS), which was launched in 2018, has become a platform for daily transactions. FPS is not limited to Hong Kong, as it is being used across systems in Thailand and Mainland China, creating a cross-border payment network that allows transfers between economies.

While the leadership acknowledges that the need to build stronger infrastructures in Hong Kong does not mean the present ones are bad, it is a call to action to build infrastructures that are ready for the future and have digital finance as a main feature. The city has been working on building on the already established infrastructure, and one such development is the digital Hong Kong dollar, or e-HKD, which the HKMA has been exploring since 2017.

The authority recently completed an e-HKD pilot program, and it is now looking to introduce it in retail scenarios for the general public. The e-HKD, issued directly by the HKMA, carries no credit risk and is being tested for wholesale payments, particularly in international trade settlements. One of the successes of the program was the project mBridge, a cross-border initiative linking the e-HKD with the CBDCs of mainland China, Thailand, and the United Arab Emirates. The project hit the viable product stage in 2024, and it has already reduced the time needed for cross-border transactions from days to seconds.

The post Hong Kong announces plans to advance CBDC strategy first appeared on Coinfea.

The agency praised the progress in the rollout of the Digital Dirham (CBDC) project, as well as its proactive stablecoin regulations. The IMF statement called for modernization efforts to continue, including careful assessments of risks while promoting local capital market development. When it came to crypto, the IMF statement noted that while the UAE is growing as a global hub for virtual assets, this should be supported by continued strong coordination among regulators to monitor risks and developments.

“Ongoing efforts to continue alignment with international regulatory standards and strengthen supervisory capacity are welcome and will be critical to safeguarding financial stability while promoting responsible innovation. We welcome the major efforts under the National AML/CFT Strategy and Action plan that resulted in the recent removal of the UAE from enhanced monitoring under the Financial Action Task Force and encourage continued progress,” the IMF said.

IMF praises UAE’s digital Dirham project

The IMF praised the UAE’s resilience against global uncertainty and regional tensions, noting that the financial sector remains strong and sound. It emphasizes that the UAE should monitor external shocks, real estate price developments, and cybersecurity, which is needed. As per the statement, the UAE is projected to grow strongly, well above the global average.

In 2025, GDP is projected to expand by 4.8 percent 2025, driven by robust non-hydrocarbon growth and a rebound in hydrocarbon output as OPEC+ production increases, accelerating further to 5.0 percent in 2026. It also noted that expansion in tourism, construction, and financial services continues to underpin growth, supported by major infrastructure projects. Inflation is projected at 1.6 percent in 2025 and around 2 percent over the medium term.

Housing costs are expected to be the primary source of price pressures, raising potential concerns about affordability, while tradables remain subdued. The IMF also noted that the UAE’s financial sector remains strong and sound, with banks remaining profitable, while the UAE banks’ exposure to the sector has gradually declined to about 18% percent of risk-weighted assets.

In September 2025, Cryptopolitan reported that the United Arab Emirates (UAE) Ministry of Finance signed a Multilateral Competent Authority Agreement (MCAA) and joined the global Crypto-Asset Reporting Framework (CARF). The UAE framework is scheduled to roll out in 2027, after which the UAE is expected to begin sharing data with international tax authorities in 2028.

CARF provides an international standard for the automatic exchange of crypto-asset-related information between tax authorities and is part of the global standards in the exchange of information for tax purposes. Close to 70 jurisdictions have committed to implementing CARF, with most preparing for their first information exchange in 2027 or 2028.

The post IMF praises the UAE on its anticipated digital Dirham first appeared on Coinfea.

The recent development was announced by the Ministry of Finance. “The first budget payment in digital rubles has been successfully completed,” the department stated in a press release published on its website on Wednesday. “The Russian Treasury has made the first salary payment in digital rubles to an individual holding a government position in the Russian Federation.”

Russia pays salaries in digital rubles

According to the department, the experiment to introduce the sovereign coin into the budgetary process is being carried out jointly with the Central Bank of Russia (CBR), the issuer of the token. This means that starting from January 1, 2026, the Minfin and the CBR will enable transactions between digital ruble accounts, the ministry said.

As mentioned in the announcement, the digital variant of the national fiat will be used for intra-budgetary transfers and to make various payments from the federal budgets as well. The ministry added that payment in digital rubles will be made only at the request of the recipient. However, it failed to reveal the first person who asked for their wages in the CBDC.

Meanwhile, the media in Russia quickly did their findings and discovered that the first digital ruble salary was paid to Anatoly Aksakov, chairman of the Committee on Financial Markets at the State Duma, the lower house of the Russian parliament. Aksakov had been involved in legislative efforts to regulate digital financial assets in Russia and create the legal basis for the country’s own digital currency.

The lawmaker received the money in his wallet on the CBR’s dedicated platform and then joined the testing of the digital Russian ruble by making some payments, his press service mentioned. The deputy transferred funds to the Life Line foundation for children with illnesses and to the SOS Children’s Villages charity for orphans. He also used some of the CBDC to place an order at a Teremok restaurant, a fast food chain that offers native russian meals.

Digital ruble set for debut in 2026

The Bank of Russia began developing its CBDC in 2021. Two years later, the Russian parliament adopted the necessary legislation to introduce it. The CBR started trials later that same year, inviting a limited number of participants, including commercial banks, companies, and private individuals. The launch had been initially planned for 2025, but the monetary authority moved it to next year.

Following a call from President Vladimir Putin for its wide adoption this summer, the regulator scheduled it for September 1, 2026. The state-issued digital currency will be introduced in several stages. The dates were also approved by Russian lawmakers with a special law, which Putin signed in July. In June, the Moscow Metro, the subway system of the Russian capital, announced it had made its first digital ruble payment.

Last month, Russia registered the first real estate deal sealed using the government cryptocurrency, as reported by Cryptopolitan. This month, St. Petersburg’s Pulkovo Airport, Russia’s second busiest, accepted digital rubles from a visitor who paid for parking, using his smartphone to scan a QR code. The air transit hub plans to introduce the CBDC payment option for other services in the future.

The post Russia records its first digital ruble salary first appeared on Coinfea.

Bessent’s position comes as most federal agencies have embarked on researching the viability of a CBDC. Assuming it happens on January 20, as now tentatively planned, his confirmation could markedly alter the course of the government’s digital currency research and development efforts.

Opposition to CBDCs in line with republican criticism

Bessent termed such a move a bad idea, which marks most Republicans’ opinion about the seemingly encouraging idea of a U.S. CBDC. Ex-President Donald Trump had asserted as a presidential candidate in 2020 that he would not allow the adoption of a CBDC due, once again, to concerns over the invasion of privacy. Back in November 2023, Trump nominated Bessent, a famous investment manager, for the post of Treasury Secretary.

Similarly, opponents of CBDCs have also dealt with what is similar to the sentiment of the Anti-Surveillance State Act that the House of Representatives approved in May 2023. The bill aims to ban the Fed from issuing or operating a digital dollar because a CBDC is believed to threaten individuals’ privacy and heighten the government’s domination of transactions.

Contrasts with global CBDC trends

These remarks of Bessent suggest a stark divergence from worldwide developments involving central bank digital currencies. Statistics from the Atlantic Council indicate that 134 countries with 98 percent of the world’s Gross Domestic Product are researching CBDCs. For instance, China has launched and uses the digital Yuan, especially in trial scenarios like the Beijing Winter Olympics 2022. Several governments deem CBDCs to be developments that facilitate reform of the payment system and expand access to finance.

However, Bessent countered that a CBDC is most useful in ill-favored investment environments, which he said are ineffective opportunities for the U.S., the world’s largest economy. These comments may portend a wholesale scrubbing of digital currency projects in the incoming government.

Potential shift in U.S. policy

If true, Bessent’s potential leadership at the Treasury might turn the tide for federal research on CBDCs. Even though organizations like the Federal Reserve have been exploring the advantages and disadvantages of digital currencies, his words signal the lack of backing for further development of this technology. This could end with a reduction of the CBDC project or withdrawal in the United States, but other states will preserve and continue their work on such programs.

The post Scott Bessent Rejects U.S. CBDC Proposal During Senate Hearing first appeared on Coinfea.

Serey Says Bakong’s Primary Objective is To Integrate the Unbanked Population

Bakong, launched by the National Bank of Cambodia (NBC) in October 2020, is a blockchain-based digital payment system designed to facilitate seamless transactions in both riel and U.S. dollars. It aims to promote financial inclusion and modernize the country’s payment infrastructure. Since its launch, Bakong has seen significant adoption, with over 200,000 users and 6.8 million transactions by the end of 2023.

Serey highlighted that Bakong’s primary objective is to integrate the unbanked population into the formal financial system. Approximately 78% of Cambodians remain unbanked, relying on cash transactions that limit their access to financial services. By providing a digital platform for transactions, Bakong enables more people to participate in the formal economy, thereby boosting the circulation and use of fiat currency.

The governor also pointed out that Bakong offers a secure and efficient means of transferring money, reducing the dependency on physical cash and lowering transaction costs. This, in turn, enhances the overall efficiency of the financial system and promotes economic growth.

Moreover, Serey mentioned that Bakong’s interoperability with other payment systems allows users to transact seamlessly across different platforms, fostering a more inclusive financial ecosystem. The digital currency’s success has garnered international attention, with several countries exploring similar initiatives to enhance their financial systems.

While the central bank acknowledges the potential risks associated with digital currencies, such as cybersecurity threats and the need for robust regulatory frameworks, it remains committed to ensuring the safe and effective implementation of Bakong. The NBC continues to work closely with financial institutions and technology partners to address these challenges and enhance the system’s resilience.

The post Cambodia’s Central Bank Governor Believes Digital Currency Will Boost Fiat Use first appeared on Coinfea.

About Clearstream

Clearstream, the operator of the D7 post-trade infrastructure, stands out as the sole central securities depository (CSD) involved in the initial stage of the ECB’s “preparatory” experiments. Besides running a German CSD, it also manages LuxCSD in Luxembourg and an international CSD.

Jens Hachmeister, the head of issuer services and new digital markets at Clearstream, commented: “We are expanding our D7 digital securities infrastructure with DLT [distributed ledger technology] components and fostering connections with the main digital payment solutions across the Eurosystem.”

This initiative aims to explore the application of distributed ledger technology (DLT) components for tokenized securities in wholesale transactions. The exploration, which will utilize real central bank funds, is scheduled to run from May through November of this year.

Clearstream’s stride in the digital ecosystem

Clearstream collaborated with Google Cloud to enhance the capabilities of D7 by experimenting with blockchain technology for the handling of wholesale transactions involving tokenized securities. This initiative includes integration with three key European central bank systems: the Trigger Solution by Deutsche Bundesbank, TIPS Hash-link by Banca d’Italia, and Full DLT Interoperability by Banque de France. Both Banca d’Italia and Deutsche Bundesbank have been exploring similar blockchain solutions since 2021. 

By the end of 2023, Banca d’Italia had entered into an agreement with the Bank of Korea to jointly research settlement systems and central bank digital currencies (CBDC). With more than 18 trillion euros in assets under its management, Clearstream also engaged in SWIFT’s trials on CBDC and tokenized assets during 2022. The decision to introduce a digital euro will await the completion of the European Central Bank’s (ECB) trials and the enactment of relevant legislation.

The post Clearstream Partners with ECB for Wholesale CBDC Trials Featuring Tokenized Securities first appeared on Coinfea.

The CDC, under Boring’s guidance, is preparing to challenge the imposition of this substantial tax, which they argue could stifle innovation within the U.S. digital asset industry. This tax, outlined in the fiscal year 2025 revenue proposals, would gradually increase to 30% over three years, beginning with an initial 10% rate.

Environmental concerns vs. innovation

The tax initiative, dubbed “Impose Digital Asset Mining Energy Excise Tax,” aims to address the environmental footprint of digital asset mining. Despite these intentions, industry proponents like Boring and Pierre Rochard of Riot Platforms argue that the measure could unfairly hamper the sector’s growth and deter innovation, even for operations utilizing renewable energy sources.

This contentious proposal has ignited a broader debate on the future of digital currencies and the role of regulation in fostering a sustainable yet competitive market. Critics worry that such fiscal measures may not only affect Bitcoin. Still, they could also set a precedent that influences the development of Central Bank Digital Currencies (CBDCs) and the broader digital asset landscape.

Navigating the complexity of digital asset regulation

As the digital asset community rallies against the proposed tax, the dialogue between industry stakeholders and policymakers continues to evolve. This debate underscores the challenges of regulating a rapidly growing sector that sits at the intersection of technological innovation, environmental stewardship, and economic policy. The outcome will likely have profound implications for the direction of digital assets in the U.S., highlighting the delicate balance between encouraging innovation and addressing environmental concerns.

The post Bitcoin mining tax proposal sparks industry outcry first appeared on Coinfea.

Digital assets to facilitate trade amid sanctions

Scheduled for its second reading, the proposed law aims to empower Russian businesses to leverage digital assets in dealings with overseas partners. The amendments, introduced in late February, are designed to integrate digital assets into the fabric of international trade agreements and financial transactions. This legislation encompasses various digital financial instruments, from central bank digital currencies (CBDCs) like the anticipated digital ruble to various forms of regulated digital securities and commodities.

The distinction is meticulously drawn between these state and bank-regulated digital assets and the broader category of cryptocurrencies, such as Bitcoin, which are defined separately as “cryptocurrencies” or “private cryptocurrencies.” This classification underscores Russia’s regulatory approach towards digital currencies, focusing on controlled digital assets while sidelining decentralized cryptocurrencies.

Strategic move against economic isolation

This legislative push is part of a broader strategy by Russia to circumvent the economic constraints imposed by Western sanctions. By fostering the use of digital assets in trade with allied nations, Russia seeks to build a more resilient and efficient economic model. The initiative reflects a concerted effort to decrease dependency on Western financial systems and promote autonomy in global trade dynamics.

Moreover, the alignment of Russia’s digital ruble with the digital currencies of allies like China indicates a move towards creating an interconnected, sanctions-resistant financial network. Despite this legislation’s optimism, experts urge caution, noting the technological and regulatory hurdles. The current framework notably excludes cryptocurrencies like Bitcoin from its scope, indicating a strategic, albeit limited, embrace of digital currencies in Russia’s financial future.

The post Russia advances bill for digital currencies in global trade first appeared on Coinfea.

This growth is bolstered by the U.S. Securities and Exchange Commission’s approval of multiple spot BTC exchange-traded funds (ETFs) in the United States. These ETFs have experienced substantial inflows, with weekly figures surpassing $1.18 billion, signifying a strong investor interest in Bitcoin and related financial products.

CBDCs paving the way for a new financial era

Alongside Bitcoin’s ascension, Central Bank Digital Currencies (CBDCs) have been gaining momentum. 130 countries, accounting for over 98% of the global GDP, are exploring or developing CBDCs. These digital currencies promise to revolutionize cross-border payments by enhancing speed and efficiency and reducing dependence on conventional financial intermediaries like SWIFT.

CBDCs also open avenues for innovation in financial services, particularly through the integration of smart contracts that enable programmable money. This development could fundamentally alter the global financial landscape, challenging the dominance of traditional currencies like the U.S. dollar in international trade and finance.

Stablecoins: A key player in the digital currency space

Peel’s analysis also sheds light on the critical role of stablecoins, especially those pegged to the U.S. dollar, in the evolving landscape of digital assets. He views stablecoins as potentially transformative, especially in how they could redefine cross-border monetary transactions, offering stability and efficiency.

The increasing adoption of dollar-backed stablecoins could bridge the conventional financial system and the burgeoning digital economy. This bridging role is crucial for a smoother transition and broader acceptance of digital currencies in mainstream finance.

As the world leans more towards digital currencies, the traditional role of dominant currencies like the U.S. dollar is being re-evaluated. Morgan Stanley’s Andrew Peel highlights this shift, indicating a future where digital assets might play a more central role in global finance, reshaping international economic interactions. This scenario underscores the need for traditional financial systems to adapt and evolve in the face of rapidly advancing digital currency technologies.

The post Bitcoin and CBDCs challenge Dollar’s financial reign first appeared on Coinfea.