Key Highlights
- The United States Senate approved a bill blocking a digital dollar until 2031.
- The restriction prevents the Federal Reserve from issuing a central bank digital currency directly or through banks.
- The measure was added to the 21st Century ROAD to Housing Act and now moves to the United States House of Representatives.
The United States Senate has passed legislation that includes a temporary restriction preventing the Federal Reserve from issuing a central bank digital currency (CBDC).
Lawmakers approved the measure in an 89–10 vote, sending the legislation to the United States House of Representatives for consideration.
The provision was included in the 21st Century ROAD to Housing Act, a broader policy package that primarily addresses housing issues but now carries the digital currency restriction as part of its final text.
Blocking digital dollar until 2031
The bill states that the Federal Reserve may not create or issue a central bank digital currency until at least 2031.
The restriction also prevents the central bank from introducing a digital currency through intermediaries such as commercial banks or other financial institutions. The rule applies regardless of whether the currency is issued directly by the Fed or indirectly through the financial system.
U.S. policymakers have discussed the possibility of a government-backed digital currency for several years, but the country has not launched one. Federal agencies and researchers have instead explored potential designs and how a digital dollar might interact with private stablecoins.
Bipartisan support drives Senate passage
The legislation was led by Tim Scott, chair of the Senate Banking Committee, and Elizabeth Warren, the committee’s ranking member. The final bill combines elements from earlier Senate proposals with provisions drawn from House legislation. Senate leaders moved the compromise forward with broad bipartisan backing.
John Thune, the Senate majority leader, said the quickest route forward would be for the House to approve the Senate version without changes.
Despite the wide margin of support, some lawmakers voted against the measure, including Brian Schatz, a Democratic senator from Hawaii.
House review could shape the outcome
Attention now shifts to the House of Representatives, where lawmakers passed a separate housing package earlier this year.
Some House Republicans have criticized the Senate’s process and signaled they may push for revisions. A key point of debate is whether the CBDC restriction should be permanent rather than temporary, as the Senate version would expire in 2031.
Next steps
The Senate vote moves the United States closer to formally restricting a potential Central Bank Digital Currency, even as other countries continue exploring or launching government-backed digital money.
If the measure becomes law, it would pause federal efforts to issue a digital dollar for several years, shaping how policymakers approach digital payments, stablecoins, and financial innovation in the United States.
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