A new US housing bill includes a provision that temporarily bans the Federal Reserve from issuing a digital dollar to consumers until 2030.
The move represents a shift from previous strong opposition to Central Bank Digital Currencies (CBDCs).
Senate Advances Housing Bill With CBDC Ban
The Senate on Monday advanced the 21st Century ROAD to Housing Act, a bipartisan bill focused on housing affordability.
The legislation aims to merge the housing priorities of both the House and Senate with the Trump administration’s efforts to prevent large institutional investors from acquiring single-family homes.
Senators voted 84-6 to move the bill forward after Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren unveiled updated legislative text for the proposal.
Of the 303 pages in the proposal, just two were dedicated to a provision banning the Federal Reserve from issuing a retail CBDC. Notably, this provision is set to expire in less than five years.
According to POLITICO, the White House stated that the Trump administration strongly supports the bill. If presented in its current form, Trump’s advisers would recommend he sign it into law.
The legislation language was seen as a victory for lawmakers who have long raised privacy concerns about CBDCs. The disquiet stemmed from the possibility that digital currencies could enable government surveillance and control over individuals’ financial activities.
However, the 2030 expiration date has led some to view the ban as ineffective.
Expiry Date Undermines Trump’s CBDC Stance
If the bill is signed into law as it stands, the Federal Reserve would be allowed to issue CBDCs after the 2030 deadline. The news has upset some, who saw it as contrary to the Trump administration’s long-standing opposition to the digital dollar.
During his campaign trail, Trump emphatically opposed the creation of a US CBDC, describing it as a form of tyranny.
Just four days after his inauguration, Trump signed an executive order entitled “Strengthening American Leadership in Digital Financial Technology.” Among its many provisions, the order explicitly detailed measures to protect Americans from the risks posed by CBDCs.
The stipulations included “prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.”
The recent legislation’s 2030 expiration date created uncertainty about the ban’s long-term impact.
While offering temporary relief for those concerned about government surveillance, the bill also opens the door for future CBDC discussions.
Source: https://beincrypto.com/us-housing-bill-bans-cbdc-issuance-until-2030/
