US Congress Reaches Bipartisan Deal to Ban CBDC Issuance Until 2030

Key Facts

In a move reflecting growing tensions over the future of financial privacy and centralized control, U.S. House and Senate leaders have reached a legislative agreement to ban the Federal Reserve from issuing a central bank digital currency (CBDC). According to reports, this prohibition was included in the '21st Century Road to Housing Act,' effectively blocking the issuance of a sovereign digital dollar until December 31, 2030. The bipartisan deal aims to ensure the Fed cannot create a digital currency without explicit authorization from Congress.

This legislative push comes as the international landscape for digital finance accelerates, with the People's Bank of China having already deployed the digital yuan and the European Central Bank progressing through its digital euro preparation phase, per market data. U.S. lawmakers, particularly Republicans, argue that CBDCs could pose a significant threat to individual privacy and financial freedom. They have expressed a preference for regulated private stablecoins over a government-run digital ledger, aligning with previous testimony from Fed Chair Jerome Powell regarding the need for a clear political mandate.