The United States Senate has taken a significant step in the ongoing debate over central bank digital currencies (CBDCs) by proposing an amendment to the Federal Reserve Act that would ban the issuance of a US CBDC until 2030. This move, embedded in the expansive ’21st Century ROAD to Housing Act’ (HR 6644), signals a cautious approach to the digital transformation of monetary systems.
The amendment, tucked into the latter pages of the 300-page bill, explicitly prohibits the Federal Reserve from issuing or creating any form of digital currency or similar digital assets, either directly or through intermediaries. However, it includes a notable exception for stablecoins, which are dollar-denominated and must remain open, permissionless, and private, with full privacy protections akin to physical currency.
Legislative Context and Support
The housing bill, which advanced with an overwhelming procedural cloture vote of 84-6, is set for full floor consideration. The White House has already voiced its support for the Act, emphasizing concerns about personal privacy and liberty that a CBDC could potentially undermine.
This is not the first attempt to block the development of a US CBDC. Similar efforts, such as the ‘No CBDC Act’ (S 464) introduced by Senator Mike Lee in February 2025 and the ‘Anti-CBDC Surveillance State Act’ (HR 1919) by Congressman Tom Emmer, have previously stalled in Congress. The renewed push in the current bill reflects ongoing skepticism among lawmakers about the implications of a CBDC.
Global CBDC Landscape
While the US takes a cautious stance, other nations are advancing their CBDC projects. According to the Atlantic Council’s CBDC tracker, Nigeria, Jamaica, and The Bahamas have already launched CBDCs, and 49 countries are actively testing them, including China, Russia, India, and Brazil. Germany’s central bank president Joachim Nagel has also highlighted the potential benefits of CBDCs for the European Union, which is currently in the pilot phase.
Implications and Forward-Looking Insights
The moratorium on a US CBDC until 2030 reflects a broader debate about the balance between innovation and regulation in the financial sector. Proponents of CBDCs argue that they could enhance financial inclusion, improve cross-border transactions, and provide a more secure and efficient payment system. Critics, however, raise concerns about privacy, surveillance, and the potential displacement of traditional banking systems.
As other countries continue to develop and implement their CBDCs, the US will need to monitor these developments closely. The moratorium provides a window for further research, public debate, and the formulation of a comprehensive policy that addresses the complex issues surrounding digital currencies. The next few years will be crucial for shaping the future of monetary policy and financial technology in the United States.
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