U.S. CBDC ban takes effect at midnight for four years through 2030
The restriction in a bipartisan housing bill became law without Trump’s signature, temporarily barring the Federal Reserve from issuing a retail digital dollar until the end of 2030.
A U.S. ban on a central bank digital currency takes effect at midnight after becoming law without President Donald Trump’s signature under the Constitution’s 10-day rule. The provision, tucked into the bipartisan 21st Century ROAD to Housing Act, bars the Board of Governors of the Federal Reserve System and regional Federal Reserve banks from issuing or creating a CBDC directly or indirectly through an intermediary until the end of 2030. Trump said he declined to sign the bill in protest over the Senate’s failure to pass the SAVE America Act, not because of the housing legislation itself. The measure passed Congress by veto-proof margins of 358-32 in the House and 85-5 in the Senate, making enactment effectively unavoidable. The law marks the first time Congress has made a retail U.S. digital currency illegal, shifting any near-term digital dollar debate from the Federal Reserve to lawmakers and underscoring how closely Washington’s stablecoin and CBDC debates have become linked.
- central bank digital currency: A digital form of sovereign money issued by a country’s central bank.
- retail digital dollar: A potential U.S. central bank digital currency designed for use by the general public.
- stablecoin: A digital token designed to maintain a stable value, often by being backed by a fiat currency such as the U.S. dollar.