US Senate passes bill banning Federal Reserve CBDC issuance until 2030

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The United States Senate has passed legislation prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC), such as a digital US dollar. The provision has been included in a broader bipartisan housing bill and approved following a 89-10 vote.

The measure states that the Federal Reserve, as the central banking system of the United States of America, “may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.”

The restriction would remain in place until at least 2030. This follows the approval of the GENIUS Act and the creation of a regulatory framework for stablecoins in the United States in 2025.

Supporters of the ban argue that a government-issued digital currency would raise privacy concerns and that limits on CBDCs could encourage private-sector innovation in digital payments.

However, the 21st Century ROAD to Housing Act, which contains the anti-CBDC provision, must still pass the House of Representatives. Lawmakers there may push for changes before approving the final version. The ban on CBDC issuance in the United States shows a contrast to other jurisdictions, such as the EU, which is actively pursuing the development of a digital euro CBDC.