A pair of Republican lawmakers is pushing for a permanent legislative ban on a U.S. central bank digital currency (CBDC) through an amended housing bill. The measure, which includes a provision to block the Federal Reserve from issuing a CBDC, is set for a House vote this week, reflecting ongoing political debate over the technology’s potential risks and benefits.
Legislation moving through Congress contains a provision to prohibit the Federal Reserve from issuing a central bank digital currency. The housing bill released by the US Senate Committee on Banking, Housing and Urban Affairs in March includes a section banning such issuance until December 31, 2030.
The US House has created an amended version of the bill that seeks to make this ban permanent. Congressman Mike Flood stated the amendment reverses what he called a “backdoor green light for a CBDC.”
Critics often cite potential drawbacks of state-issued digital currencies. The Human Rights Foundation outlined that benefits could include expanding financial inclusion, while drawbacks encompass risks to privacy and new avenues for government corruption.
Representative Warren Davidson supported a permanent ban, arguing the 2030 sunset date in the Senate bill functions as a “pre-launch development period.” He characterized the current housing legislation as potentially delivering “a go-live date for Central Bank Digital Currency, using housing as the Trojan Horse.”
Separately, House Majority Whip Tom Emmer is advocating for his Anti-CBDC Surveillance State Act, which passed the House in July. Emmer claims, “The Chinese Communist Party uses a central bank digital currency (CBDC) to surveil and control its people.”
Senator Mike Lee also introduced a standalone bill called the “No CBDC Act” to prohibit a U.S. CBDC, though it has stalled. According to The Atlantic Council’s tracker, only three countries—Nigeria, Jamaica, and the Bahamas—have officially deployed a CBDC to date.
