A bloc of House Republicans is threatening to block the Senate’s 21st Century ROAD to Housing Act unless lawmakers replace its temporary CBDC restriction with a permanent ban.
The current bill would prohibit the Federal Reserve from issuing a central bank digital currency until December 31, 2030, after which the restriction would expire.
“A CBDC is essentially a digital dollar issued and controlled by the Federal Reserve. Unlike cash, it could allow the government to track transactions and monitor how Americans spend their money,”
Said Representative, Ralph Norman.
The group is pushing lawmakers to adopt language from Majority Whip Tom Emmer’s Anti-CBDC Surveillance State Act, which would permanently prohibit a retail digital dollar and prevent the Federal Reserve from running pilot programs.
Supporters argue a government-run digital currency could enable financial surveillance and allow authorities to restrict how citizens use their money.
Critics of a permanent ban warn that rejecting CBDC development could leave the United States behind other major economies pursuing state-backed digital currencies.
China’s central bank is already rolling out the digital yuan, while the European Central Bank continues advancing its plans for a digital euro.