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The new US housing law includes a provision that temporarily prohibits 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).
The Senate is advancing a bill of accommodation with the prohibition of digital currencies of the central bank
The Senate advanced the 21st Century Housing Pathway Act on Monday. It is a bill Bipartisan focus on housing affordability.
The legislation aims to integrate the housing priorities for both House of Representatives and Senate With the Trump administration’s efforts to prevent large institutional investors from acquiring single-family homes.
Senators voted 84-6 to advance the bill after Banking Committee Chairman Tim Scott and ranking committee member Elizabeth Warren unveiled the proposal’s updated legislative text.
Of the 303 pages in the proposal, only two pages are devoted to a provision that prohibits the Fed Of issuing a retail CBDC. It should be noted that this clause is expected to expire in less than five years.
“Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank may issue or create a central bank digital currency or any digital asset that closely resembles a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
According to Politico, the White House has said the Trump administration strongly supports the law. If it was introduced in its current form, Trump’s advisers would recommend signing it into law.
The text of the legislation was considered a victory for the legislators who They have long raised privacy concerns about banking digital currencies. Concern has arisen over the potential of digital currencies to enable government surveillance and control of individuals’ financial activities.
However, the 2030 deadline has led some to consider the ban ineffective.
The deadline undermines Trump’s position on the central bank’s currency
If the project was signed into law as it is now, allow the Fed Issuing digital currencies yet Deadline 2030. This news angered some, who saw it as conflicting with the Trump administration’s long-standing opposition to a digital dollar.
During his campaign, he strongly opposed Trump Creation of US central bank currencydescribing it as a form of tyranny.
“Such a currency would give the federal government — our federal government — absolute control over your money. They could take your money and you wouldn’t even know it was gone,” the president said during a January 2024 campaign in New Hampshire.
Just four days after its inauguration, Trump signed an executive order Entitled “Strengthening American Leadership in Digital Financial Technology.” Among its many provisions, the order explicitly outlines measures to protect Americans from the risks posed by digital currencies to banks.
The terms include “prohibiting the creation, issuance, distribution, and use of central bank digital currencies (CBDCs) within the jurisdiction of the United States.”
The 2030 expiration date of recent legislation has created uncertainty about the long-term impact of the ban.
While the bill provides temporary relief to those Concerned about government surveillanceThe bill also opens the door to future discussions on centralized currencies (CBDCs).
