The U.S. Senate passes the Housing Act with an 85:5 supermajority, and the Federal Reserve's 4-year CBDC ban is also enacted into law.

U.S. Senate Passes Housing Affordability Bill with 85:5 Vote, Including 4-Year CBDC Ban
The bill also contains a ban on central bank digital currencies (CBDCs). The Federal Reserve will be prohibited from issuing digital dollars before the end of 2030, with the European Central Bank and China’s digital currencies taking the lead.
(Background: Crypto legislation delayed again! Senate leader: Market structure bill may pass as early as April, CBDC ban amendment to clear first)
(Additional context: Stablecoins and CBDCs competing — only one can survive?)

Table of Contents

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• Housing Bill Includes CBDC Ban
• The Path of Digital Dollar: From Europe to China
• Views of Federal Reserve Officials on "Bad Policies"
• Implications for Taiwan

On Monday evening, the U.S. Senate passed the “21st Century Road to Housing Act” with a high vote of 85:5, and the bill’s inclusion of a ban on central bank digital currencies (CBDCs) has now entered the legislative process. If the House of Representatives approves and President Trump signs it, the Federal Reserve will be unable to issue digital dollars within the next four years.

Housing Bill Includes CBDC Ban

This bipartisan-supported housing affordability bill was originally unrelated to digital currencies, but Republican lawmakers insisted on adding a prohibition clause during review. The bill explicitly states:

The Board of Governors of the Federal Reserve System and the Federal Reserve Banks shall not directly or indirectly, through financial institutions or other intermediaries, issue or create central bank digital currencies or any digital assets that are substantively equivalent to central bank digital currencies.

The ban is effective for four years, until the end of 2030. House members are expected to expedite a vote on Tuesday or Wednesday.

The Path of Digital Dollar: From Europe to China

If the U.S. successfully issues a digital dollar, the European Central Bank plans to launch a pilot of the digital euro in 2027, with full deployment by 2029. China’s People’s Bank has already launched the digital yuan (e-CNY), conducting large-scale trials in multiple cities.

CBDC operates similarly to government-issued stablecoins, issued and managed directly by the central bank. Unlike stablecoins, CBDCs represent a digital form of fiat currency, not a private product pegged to an asset.

Views of Federal Reserve Officials on "Bad Policies"

Former Fed Chair Jerome Powell has stated that even the operation and management of a digital dollar would be handled by banks. New Fed Chair Kevin Warsh explicitly opposed CBDCs during his nomination hearing, calling it a “bad policy choice.”

President Trump signed an executive order in January 2025, prohibiting any federal agency from taking actions to advance CBDCs, citing concerns that digital dollars could “threaten financial stability, personal privacy, and U.S. sovereignty.”

Implications for Taiwan

Taiwan’s central bank has not publicly advanced a digital currency plan, but the infrastructure for digital New Taiwan Dollars (NTD) has already begun deployment. Central Bank Governor Wang Sheng-bo stated last year that digital NTD is “not a matter of whether to do it, but when,” with Taiwan referencing Japan and Singapore’s digital currency experiences.

Although the CBDC ban in the U.S. applies only domestically, signals indicate that major economies’ attitudes toward digital currencies are shifting from “technological experimentation” to “policy choice.”

If Taiwan also proceeds with a digital NTD in the future, a four-year exclusive testing period would be reasonable. Digital currency is not just a technical issue but involves redesigning monetary policy and financial infrastructure.