US Senate votes to include CBDC ban in bipartisan housing bill
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The provision banning the Federal Reserve from issuing a central bank digital currency was included in housing affordability legislation.
The United States Senate voted on Thursday to include an amendment in the 21st Century Road to Housing Act that would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC).
The CBDC prohibition will remain in effect until Dec. 31, 2030, according to the amendment in the bill. The legislation, which passed 89-10, stated:
However, the bill does not prohibit any dollar-denominated digital currency that is “open, permissionless, and private,” such as stablecoins.
US Treasury Secretary Scott Bessent and President Donald Trump have presented dollar-pegged stablecoins as a way to extend US dollar hegemony, while Trump and other Republican lawmakers have taken a hardline stance against CBDCs.
Related: Republican opposition to CBDC could hold up housing affordability bill
More than 30 US lawmakers signed a letter on March 6, urging the Senate to pass a permanent CBDC ban, rather than a temporary moratorium.
“A CBDC would give unelected bureaucrats unprecedented power over Americans’ finances and threaten basic economic freedom,” Representative Ralph Norman, one of the signatories of the letter, said.
Representative Warren Davidson, a long-time critic of CBDCs, has also criticized regulated dollar-pegged stablecoins as having the same surveillance capabilities as CBDCs.
Warren also warned that regulations under the Guiding and Empowering Nation’s Innovation for US Stablecoins (GENIUS) Act create an avenue to “control” and “coerce” the US population through financial surveillance techniques and programmable money.
Hedge fund manager Ray Dalio also recently warned that CBDCs would expand the government’s control over people’s finances.
“There will be no privacy, and it's a very effective controlling mechanism by the government,” Dalio said in an interview with independent journalist Tucker Carlson.
CBDCs likely won’t be yield-bearing, meaning they do not offer inflation protection and can be automatically taxed or frozen by the government, he added.
Magazine: GENIUS Act reopens the door for a Meta stablecoin, but will it work?
Source: CoinTelegraph
