Anti-CBDC Housing Bill: Tim Scott and Elizabeth Warren introduced the bipartisan “21st Century ROAD to Housing Act”, a housing affordability package with an unexpected rule that prevents the Federal Reserve (FED) from issuing a Central Bank Digital Currency (CBDC) until 2031. Tim Scott and Elizabeth Warren had an overwhelming procedural vote passing the CBDC prohibition 84-6.
Why an Anti-CBDC Provision Landed in a Housing Bill
The CBDC prohibition (two pages) appears in a 303 page bill legislative tactic called a ‘rider’ that allows unrelated priorities to “ride along” to must-passed bills. Inclusion of the CBDC prohibition was cosponsored by House Republicans and was denied last year during a ‘stand-alone’ bill passage attempt. The CBDC prohibition acts as an exception to not include open, permissionless and private U.S. dollar-denominated currency that supports the protection of physical cash privacy.
The President of the United States’ administration (White House) stated clearly that the inclusion of the prohibition prevented the technology from being authorized which could create significant intrusion or threats to personal liberty and security.
Aanti-CBDC Housing Bill: Next Steps
The bill moves to a full Senate debate, where changes could be made to the CBDC section. Ultimately, the fate of the bill will be decided after reconciling it with the House version so that the President can sign it. Because of the sunset clause, it will also be debated again in 2030.
