Congress Bars U.S. CBDC Development Until 2030

Congress included language in a housing bill that prevents federal agencies from developing or implementing a U.S. central bank digital currency using federal funds or regulatory authority through Dec. 31, 2029. The provision is part of a larger housing package being negotiated in Congress.

The text bars federal agencies, including the Federal Reserve and the Treasury Department, from issuing a digital dollar or using appropriated funds to support a CBDC project until the specified date. The restriction is temporary and expires at the start of 2030.

Supporters of the provision framed it as a response to privacy and civil liberties concerns and said it would preserve the existing banking structure while federal officials continue study. They expressed worry that a federally issued digital currency could create new government access to individuals’ payment data or new tools to control transactions.

Opponents argued that an extended moratorium could limit the Federal Reserve’s and other agencies’ ability to research and run pilot programs. They warned the pause could leave the United States behind countries testing digital currencies and slow potential improvements to payment speed, cross-border transfers and financial inclusion.

The provision applies to federal action and the use of federal dollars. It does not prohibit private-sector digital currencies or stablecoins, nor does it prevent banks or fintech firms from developing digital payment services. The language does not directly change existing payment systems, including the Federal Reserve’s separate instant-payment efforts.

The Federal Reserve has conducted research, public engagement and released papers on CBDC concepts in recent years, exploring design options, benefits and risks. Federal officials have said a decision to issue a CBDC would require further study of legal, technical and policy questions and would likely need congressional authorization for major steps.

If the housing bill, including the CBDC restriction, is enacted, federal agencies would be required to stop using appropriated funds to advance a U.S. CBDC until Jan. 1, 2030. The final impact will depend on whether the housing bill becomes law and on how agencies interpret and implement the new restriction.