The United States Congress has taken a distinctly different approach to the development of central bank digital currencies (CBDCs), introducing a significant restriction on the future of digital money in the country.
The legislation, known as the 21st Century ROAD to Housing Act, includes a provision that temporarily bars the Federal Reserve from issuing a Central Bank Digital Currency (CBDC), commonly referred to as a digital dollar, until at least 2030.
The measure reflects growing concerns among lawmakers over privacy, government oversight, and the role of state-backed digital currencies, while underscoring Congress’ preference for private-sector digital payment innovations such as stablecoins.
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Speaking on the Bill, Congresswoman Maxine Waters said,
“Finally, the Senate added a temporary ban on central bank digital currencies that is the CBDC. This is the status quo we have in effect already as Trump’s new Fed Chair has stated that he will not issue a CBDC during his tenure. More importantly, this temporary ban is only partial and will still allow the Fed to study other forms of CBDC, like the ones that more closely parallel how currency is used in our economy.”
She framed it neutrally as part of the Senate’s additions, noting its temporary limited nature. Meanwhile, several other House conservatives pushed for a permanent ban rather than the Senate’s temporary version through 2030.
The Senate passed the legislation on June 22, 2026, by an 85-5 vote. The House followed with strong bipartisan support on June 23, clearing it by a margin of 358-32. The bill now heads to President Trump’s desk for signature.
CBDC Provision Sparks Attention
The US congress ban on CBDC, applies directly or indirectly via financial institutions or intermediaries. This marks the first statutory restriction of its kind on the Fed’s potential digital currency ambitions, even though the central bank has not actively pursued a retail CBDC project.
Notably, Kevin Warsh, President Donald Trump’s nominee to lead the Federal Reserve, has taken a firm stance against the creation of a U.S. central bank digital currency (CBDC).
Speaking during his Senate confirmation hearings in April 2026, Warsh argued that the Federal Reserve does not possess clear legal authority to issue a digital dollar and characterized the idea as a poor policy decision.
He further reassured lawmakers that, if confirmed as Fed Chair, he would not permit the central bank to pursue a CBDC, stating that he would stop such efforts if they fell within his authority.
His remarks align with the Trump administration’s broader opposition to a government-issued digital currency and its preference for private-sector digital payment innovations, including stablecoins.
The temporary nature of the ban set to expire after 2030 has drawn mixed reactions. Supporters view it as a safeguard against government overreach and surveillance risks, while some critics argue for a permanent prohibition or question the specific end date.
Understanding CBDCs and How Countries Are Rolling Them Out
Over the past several years, countries around the world have taken different approaches to CBDC development. Some have fully launched digital currencies, while others remain in pilot or research phases.
China has emerged as one of the most ambitious CBDC pioneers through its digital yuan, known as e-CNY. Although still officially classified as a pilot program, the digital yuan has been expanded across numerous cities and is being used for retail payments, government transactions, and selected cross-border payment projects.
While countries such as the Bahamas, Jamaica, and Nigeria have launched their digital currencies, usage levels have generally been lower than initially anticipated.
Nevertheless, central banks continue to experiment with digital currencies, viewing them as a potentially important component of the future financial system.
Outlook
The United States has taken a markedly different approach to CBDCs. Although the Federal Reserve has explored the concept of a digital dollar, recent legislative measures and policy decisions have effectively halted efforts to introduce a retail central bank digital currency.
With strong bipartisan momentum, the bill is expected to be signed into law soon. Proponents highlight its potential to meaningfully increase housing supply and ease affordability pressures, while the CBDC rider represents a notable congressional check on monetary innovation.
This legislation arrives amid ongoing debates over housing costs, financial privacy, and the future of digital money in the United States.