Donald Trump · US Senate · Federal Reserve (FED) · White House · Republicans · CoinDesk
U.S. Senate passes housing bill that carries four-year ban on a Fed CBDC
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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.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- President Donald Trump signed an executive order in January 2025 that prohibited his administration from making any moves toward a CBDC, which he said would "threaten the stability of the financial
- However, the ban would only last for a limited four years until the end of 2030
- The European Central Bank has been working on a digital euro that's set to get a pilot program next year and a full launch in 2029
Summary
The U.S. Senate passed its bipartisan housing affordability bill, and within its pages is a temporary ban on central bank digital currencies in the U.S. The bill, which is expected to quickly pass the House of Representatives on its way to becoming law, would put a four-year prohibition on a CBDC, though there's no federal project currently working on instituting one. Thanks to the newly passed U.S. 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.