Thanks to the newly passed U.S. Senate housing affordability bill, the Federal Reserve may be heading toward a formal ban from instituting a digital dollar in the form of a central bank digital currency (CBDC), despite the fact the Fed wasn’t working on such a project.
Republican politicians had embraced an aggressive opposition campaign against the U.S. following in European and Chinese footsteps in the pursuit of a CBDC, labeling the idea a dangerous overreach of government surveillance. So they insisted it get inserted into the 21st Century ROAD to Housing Act that just passed the Senate in an 85-5 vote Monday night.
The concept of a digital dollar likely would have needed the backing of the White House, Congress and the Federal Reserve, none of which pushed to pursue one. But if the House of Representatives follows suit and votes to send the housing bill to President Donald Trump for his signature, the CBDC will be legally stifled.
However, the ban would only last for a very limited four years until the end of 2030.