The U.S. Senate has voted to include a prohibition on Federal Reserve central bank digital currency (CBDC) issuance in a bipartisan housing legislation package, marking another legislative obstacle to domestic digital dollar development.
The amendment, incorporated into the housing bill under consideration, would prevent the Federal Reserve from directly issuing a CBDC to individual consumers without explicit congressional authorization. The move reflects growing bipartisan concern over potential privacy implications and financial system risks associated with a government-backed digital currency, even as other nations accelerate CBDC pilot programs.
The inclusion signals intensifying political resistance to Federal Reserve CBDC initiatives in Congress, where lawmakers from both parties have expressed apprehension about the central bank's unilateral authority over monetary infrastructure. The housing bill vehicle provides a non-controversial legislative path for CBDC restrictions, suggesting the prohibition may face lower political friction than standalone digital currency legislation.