The U.S. Senate has vetoed the digital dollar: a temporary ban on CBDC until 2030.
The U.S. legislative body has taken a decisive step that could reshape the future of the country's monetary system. The upper house of Congress approved the 21st Century ROAD to Housing Act, which imposes a direct ban on the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The decision was passed by an overwhelming majority — 85 votes in favor versus only five against.
Essence of the Temporary Moratorium
The document blocks any attempts by the Fed to issue a CBDC, either directly or through financial institutions or third-party intermediaries. This means the regulator will not be able to create digital assets that are "substantially similar" to a traditional central bank digital currency. However, lawmakers made an important exception: the ban does not apply to dollar currency that remains open, does not require special permissions, and ensures privacy comparable to cash dollars.
Long-Term Implications
Even after the temporary ban expires in 2030, the Fed will not be able to launch a CBDC without obtaining separate approval from Congress. This sets a powerful precedent that effectively puts an end to any plans for introducing a digital dollar in the foreseeable future. The next step will be a vote in the House of Representatives, where, in my assessment, the bill also has a high chance of approval.
My expert assessment: This move is not just a bureaucratic delay but a clear signal to the market that the U.S. is betting on preserving the decentralized nature of the dollar and protecting user privacy. For the crypto industry, this is a positive sign: it reduces the risks of government control over digital finance and stimulates the development of private stablecoins and other DeFi instruments. However, investors should remember that the temporary nature of the ban does not guarantee a final rejection of CBDCs — the battle for control over digital currency is just beginning.