Thanks to the U.S. Senate’s recently passed housing affordability bill, the Federal Reserve may be moving toward a formal ban on instituting a digital dollar in the form of a central bank digital currency (CBDC), despite the fact that the Fed was not working on such a project.
Republican politicians had launched an aggressive opposition campaign against the United States, following in the footsteps of Europe and China in pursuing a CBDC, calling the idea a dangerous overreach of government oversight. They therefore insisted that it be inserted into the 21st Century ROAD to Housing Act which was just adopted by the Senate in a vote of 85 to 5 on Monday evening.
The concept of a digital dollar would likely have required support from the White House, Congress and the Federal Reserve, none of whom pushed to implement one. But if the House of Representatives follows suit and votes to send the housing bill to President Donald Trump for signature, the CBDC will be legally stifled.
However, the ban would only last for a very limited period of four years, until the end of 2030.
