US Senate bans Federal Reserve CBDC through 2030 in housing bill

The US Senate voted 85-5 to pass the 21st Century Road to Housing Act, a bill aimed at increasing housing supply. The package includes a ban preventing the Federal Reserve from creating or working on a central bank digital currency (CBDC) until 2030, and the provision has been part of the bill since the Senate passed an earlier version in March.

The legislation states the Fed may not, directly or indirectly, "issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency." It makes a carve-out for stablecoins described as "dollar-denominated currency that is open, permissionless, and private," and says the Fed cannot act on a CBDC after 2030 without explicit congressional authorization.

Lawmakers folded the CBDC clause into the housing package to secure support from House Republicans and the administration.

United States

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