The Senate Committee on Banking, Housing and Urban Development has introduced a bipartisan bill that includes a provision prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) until at least 2031. This measure is part of the broader “21st Century ROAD to Housing Act,” aimed at addressing housing supply issues in the United States.
Introduced by Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, the legislation seeks to facilitate housing development by reducing regulatory barriers and costs. In a statement, Scott emphasized the bill’s focus on enhancing economic opportunities for individuals, particularly those striving for homeownership.
Warren echoed this sentiment, highlighting the bill’s bipartisan nature and its intent to curb the influence of corporate landlords on housing accessibility. The CBDC ban, which is a relatively minor aspect of the 303-page legislation, has been included in previous bills but has not yet passed through Congress.
The specific language of the bill restricts the Federal Reserve and its banks from creating or issuing a CBDC or any similar digital asset, with an exception for private currencies that maintain the privacy features of physical cash. The provision includes a sunset clause, set to expire on December 31, 2030.
The White House has expressed support for the legislation, particularly the CBDC ban, citing concerns over potential threats to personal privacy and liberty. This endorsement aligns with the administration’s broader priorities regarding digital currency development.
As discussions around digital currencies continue, the implications of such legislative measures will be closely monitored, particularly in light of ongoing debates about the future of money and financial privacy in the digital age.
The Senate Banking Committee's bipartisan bill includes a provision banning the Federal Reserve from issuing a central bank digital currency until 2031, as part of efforts to improve housing supply in the U.S. The White House supports this measure, citing privacy concerns.