Trump Blocks CBDC Ban Until Unrelated Voting Legislation Passed

US President Donald Trump has refused to sign a law that includes a four-year ban on central bank digital currencies (CBDCs) until he gets unrelated legislation passed that would demand proof of citizenship from voters. The CBDC ban was part of Congress' housing affordability bill, which was set for a signing ceremony on Wednesday.

Trump cited the SAVE America Act, which carries contentious federal voting policies to require citizenship proof and identification from voters, as the reason for his refusal to sign the law. The president had made a threat earlier this year to block all other legislation until the SAVE America Act lands on his desk.

The delay in signing the law could represent a heavy blow to Congress, which had both parties embracing the housing effort. It also sets back anti-CBDC forces, as the idea of banning such digital dollars was strongly supported by the crypto industry looking forward to the four-year prohibition that extends to the end of 2030.

Republican politicians have argued that a digital dollar managed by the Federal Reserve could be used to spy on citizens' finances. Trump signed an executive order last year banning any US moves toward a CBDC, citing threats to individual privacy and the sovereignty of the United States.