In anticipation of this week’s planned House vote on the 21st Century ROAD to Housing Act, two Republican members have introduced a permanent prohibition on a US central bank digital currency (CBDC).
A portion of the March bill that the US Senate Committee on Banking, Housing, and Urban Affairs introduced prohibits the government Reserve System or any Federal Reserve bank from issuing CBDCs or other instruments until December 31, 2030. The bulk of the measure deals with changes to government housing programs.
Block the CBDC Issuance Indefinitely
The US House of Representatives has drafted its own revised measure with the goal of making the prohibition permanent; according to Congressman Mike Flood, this reverses the “backdoor green light for a CBDC” and more.
It is anticipated that this week the House will vote on the modified bill. The measure will go back to the Senate for further revisions if it passes. In order for President Trump to sign the bill into law, it must first pass both houses of Congress.
The possibility for CBDCs to be abused is a common argument against them. One of the supposed advantages of CBDCs, according to the Human Rights Foundation, is that they could help more people who don’t have much luck getting into the financial system. Among the many problems with the currency is the fact that it might lead to new forms of government corruption and invasions of privacy.
In light of the “2030 sunset works a pre-launch development period,” US House Representative Warren Davidson likewise backed a long-term prohibition on CBDCs.
Warren added:
“The US House of Representatives could deliver a unifying win this week with bipartisan housing affordability legislation. Instead, they currently plan to deliver a go-live date for Central Bank Digital Currency, using housing as the Trojan Horse.”