Thanks to the recently passed Housing Affordability Act in the US Senate, the Federal Reserve may be heading towards a formal ban on introducing a digital dollar in the form of a central bank digital currency (CBDC), despite the fact that the Fed was not working on such a project.
Republican politicians had embraced an aggressive opposition campaign against the US following in European and Chinese footsteps in the pursuit of a CBDC, calling the idea a dangerous overreach of government surveillance. So they insisted it be inserted into the 21st Century ROAD to Housing Act, which just passed the Senate on an 85-5 vote Monday night.
The concept of a digital dollar would likely have needed the backing of the White House, Congress and the Federal Reserve, none of whom pushed to pursue one. But if the House of Representatives follows suit and votes to send the housing bill to President Donald Trump for his signature, the CBDC will be legally strangled.
However, the ban will only last for a very limited four years until the end of 2030.
