The U.S Senate voted on Thursday to include an amendment in the 21st Century Road to Housing Act that would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), with the restriction set to remain in effect until Dec. 31, 2030.
Under the amendment, the Federal Reserve Board and any Federal Reserve bank would be barred from issuing or creating a central bank digital currency, or any digital asset deemed substantially similar to one, either directly or indirectly through a financial institution or other intermediary.
The Board of Governors of the Federal Reserve System or a Federal Reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.
The measure defines a central bank digital currency as a digital form of U.S currency, denominated in dollars, issued as a direct liability of the Federal Reserve System and broadly available to the general public.
The amendment also includes an exception stating that the prohibition would not apply to any dollar-denominated currency that is open, permissionless, and fully preserves the privacy protections of U.S coins and physical currency.
Subsection (b) shall not prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.
Blocked in the U.S, Advancing Globally
While the Senate moved to block a U.S central bank digital currency, CBDC projects remain widespread globally, according to the Atlantic Council’s CBDC Tracker, which shows that 137 countries and currency unions are exploring a CBDC, with 72 already at advanced stages such as development, pilot, or full launch.
A separate Bank for International Settlements survey found that 85 of 93 central banks, or 91%, were exploring a retail CBDC, a wholesale CBDC, or both in 2024, with wholesale projects generally more advanced than retail ones.
Taken together, those figures show the United States is moving against a broader international current. Even where central banks have stopped short of launching a retail digital currency, many are still testing use cases, legal frameworks, and cross-border payment systems, suggesting that CBDCs remain an active part of monetary policy planning worldwide.
