The US Congress has passed a comprehensive legislative package that includes a provision banning the Federal Reserve from issuing central bank digital currencies (CBDCs) until 2030.
The '21st Century Housing and Roads Act' focuses primarily on housing finance, infrastructure investments, and transportation projects. However, the inclusion of a CBDC provision in the bill marks a significant development in the ongoing debate surrounding the digital dollar.
Central bank digital currencies are digital assets backed by governments and issued directly by central banks. The Fed has been conducting studies on a possible digital dollar project, but some politicians have expressed concerns that CBDCs could negatively impact individual financial privacy.
The new regulation will give private sector stablecoin projects and traditional financial institutions' digital payment solutions more space to develop. Experts interpret the decision as both positive and negative for decentralized crypto assets.