U.S. Senate Approves Temporary Ban on CBDC

The U.S. Senate has passed a bill banning the Federal Reserve from issuing CBDCs until 2030, with an exception for cash privacy.

The U.S. Senate has approved the 21st Century ROAD to Housing Act, which prohibits the Federal Reserve from issuing a CBDC or any substantially similar digital assets until the end of 2030, whether directly, through financial institutions, or via other intermediaries. The bill received support from 85 senators, with five voting against it.

The legislation includes an exception for the dollar, which remains open, does not require permissions, and preserves the privacy of cash transactions. Even after the temporary ban expires, the Federal Reserve will not be able to launch a CBDC without separate Congressional approval. The next step is a vote in the House of Representatives.