Senate Approves Bill Prohibiting Digital Dollar
On Thursday, the Senate made a decisive move by approving a bill that includes a prohibition on the establishment of a U.S. central bank digital currency (CBDC), commonly known as a “digital dollar.” The legislation’s ban is set to remain in place until 2031. This measure was incorporated into a larger housing initiative known as the 21st Century ROAD to Housing Act, which garnered significant bipartisan support, passing with a vote of 89 to 10.
Debate Surrounding Central Bank Digital Currencies
Central Bank Digital Currencies, created by government entities to function similarly to cash, have generated considerable debate in the U.S. Recent discussions have been particularly pronounced among conservative groups who express concerns that a government-issued digital dollar could lead to increased surveillance of citizens’ financial transactions.
Next Steps for the Legislation
However, despite the Senate’s approval, the CBDC prohibition is not yet established law. The housing measure still needs to clear several obstacles, chiefly opposition in the House of Representatives, where it must be approved before reaching President Donald Trump for signing. Ongoing tensions between House Republicans and their Senate counterparts have emerged in recent weeks primarily regarding provisions that would restrict large corporations from investing in single-family homes.
Rep. French Hill (R-AR), who chairs the House Financial Services Committee, emphasized the importance of addressing the concerns of House members, mentioning the need for clarity and improvements in the Senate’s proposed legislation.
Potential Delays in Legislation
Furthermore, even if both chambers of Congress endorse the bill, it may face delays in becoming law. Earlier this week, President Trump indicated he would not sanction any new legislation until Congress passes the SAVE Act, a contentious voting reform proposal that has struggled to gain traction. Reportedly, during discussions with House Speaker Mike Johnson (R-LA), Trump dismissed the urgency of the housing bill, stating,
“no one gives a [bleep] about housing,”
according to Punchbowl News.
