U.S. Congress Engaged in Intense Battle: Republicans Push for Permanent Ban on CBDC, Trump's Policy Stance Returns to the Spotlight

March 9 News: The controversy over Central Bank Digital Currencies (CBDCs) in the U.S. Congress continues to escalate. As the Senate prepares to advance the “21st Century Housing Act” (HR 6644), several Republican lawmakers are jointly pushing to permanently ban the U.S. from developing and issuing CBDCs, warning that if related provisions are not amended, it could hinder the passage of the entire housing legislation.

This initiative was launched by Representative Michael Cloud, who, along with 27 members of Congress, submitted a written statement to House Speaker Mike Johnson and Senate Majority Leader John Thune, demanding that the original temporary ban on CBDC issuance, set to expire on December 31, 2031, be upgraded to a permanent restriction. The lawmakers believe that a temporary ban is insufficient to prevent the government from expanding its financial regulatory powers through digital currency systems.

The controversy centers around a roughly 300-page bill text released earlier by the Senate Banking, Housing, and Urban Affairs Committee, which includes provisions limiting the Federal Reserve’s ability to issue CBDCs but only as a phased pause. Michael Cloud and several other lawmakers emphasized that the House had previously passed legislation explicitly opposing the development of CBDCs, so the Senate version must be adjusted to align with the House’s stance.

Several lawmakers also pointed out that CBDCs could lead to comprehensive monitoring of citizens’ financial activities. On March 7, Representative Ralph Norman posted on X (formerly Twitter) that once the CBDC system is launched, the government will have the ability to track transactions and analyze consumption patterns. He argued that this mechanism constitutes an “essential power expansion” and could grant unelected bureaucrats unprecedented fiscal control, threatening individual economic freedom.

Meanwhile, U.S. digital currency policy is closely linked to global competition. The lawmakers mentioned in their letter that the Trump administration emphasized maintaining U.S. leadership in cryptotechnology to counter China’s digital yuan development.

Opinions in the financial sector on CBDCs vary significantly. Ray Dalio, founder of Bridgewater Associates, stated in an interview with Tucker Carlson that the era of CBDCs is approaching. He warned that if the government gains full control over the digital currency system, it could theoretically use technology to enforce taxes, restrict fund usage, or even freeze personal assets.

Globally, many countries are accelerating their CBDC projects. China’s digital yuan (e-CNY) has become one of the largest CBDC pilot programs worldwide. In Europe, ECB official Fabio Panetta indicated that the digital euro could be ready by 2029. Meanwhile, some central banks in the Middle East and Asia are exploring cross-border digital currency settlement systems, pushing the global monetary system toward digitalization.