House, Senate Strike Deal on Housing Bill With CBDC Ban Through 2030

The House and Senate reached a bicameral agreement on the 21st Century ROAD to Housing Act this week, which includes a provision prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) until at least January 1, 2030. This agreement effectively halts any potential U.S. digital dollar development for the next six years. The inclusion of this ban was a key sticking point in negotiations, with proponents arguing it was necessary to prevent potential risks associated with a government-controlled digital currency, such as privacy concerns and the potential for financial surveillance. Opponents of the ban, however, expressed concerns that it could hinder innovation and put the U.S. at a disadvantage compared to other countries actively exploring or implementing CBDCs. The bill's passage now moves it to the House floor for a vote, and if successful, it will proceed to the Senate. The final legislation aims to address housing affordability and availability while simultaneously imposing a significant moratorium on the development of a U.S. CBDC.