U.S. lawmakers seek full CBDC ban over financial surveillance fears

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U.S. lawmakers seek full CBDC ban

Highlights

U.S. lawmakers call for a permanent ban on CBDCs.
Congress debates a temporary CBDC ban until 2031.
More than 130 countries are already exploring CBDCs.

The renewed discussion follows an amendment to the Federal Reserve Act. The amendment introduces a temporary ban on issuing CBDCs until 2031, but some members of Congress say the measure does not go far enough, Cointelegraph reports.

Lawmakers demand a permanent ban

Congressman Michael Cloud, together with 28 colleagues, sent a letter to House Speaker Mike Johnson and Senate Majority Leader John Thune. In the document, they called for a permanent ban on the issuance of a central bank digital currency in the United States.

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“We write to you to express the dire need to prohibit a Central Bank Digital Currency from ever happening in the United States,” the letter states.

The debate intensified after the release of the bill titled “Road to Housing in the 21st Century” (HR 6644) prepared by the Senate Banking Committee. The document includes an amendment to the Federal Reserve Act that prohibits the issuance of a CBDC until 2031.

The authors of the letter argue that a temporary restriction is insufficient. “A prohibition of a Central Bank Digital Currency must be permanent,” the lawmakers wrote. In their view, the introduction of a CBDC could expand the government’s ability to monitor financial transactions.

The letter also states that central bank digital currencies would “subject Americans to unconstitutional financial surveillance and grant the unelected Federal Reserve unprecedented power over Americans’ finances, violating their civil liberties and financial independence.”

Debate over CBDC legislation

Lawmakers also noted that the proposed amendment softens the provisions of a tougher bill — the CBDC Anti-Surveillance State Act (HR 1919). The legislation was introduced by Congressman Tom Emmer in 2025.

The House of Representatives approved HR 1919 in the summer of 2025, but the Senate has not passed it. At the same time, the current amendment does not prevent the Federal Reserve from continuing research into digital currencies.

According to the authors of the letter, such research could become a stepping stone toward launching a CBDC in the future. “A CBDC is inherently anti-American and a looming issue we must put an end to before it is too late,” the document states.

Why the CBDC debate extends beyond the U.S.

The debate in the United States comes amid growing global interest in central bank digital currencies. According to the Bank for International Settlements, more than 130 countries are studying or testing CBDC projects.

The most advanced pilot programs are taking place in China, where the digital yuan is already being used in trial programs, as well as in the European Union, where the European Central Bank is preparing the digital euro project. Many governments see CBDCs as a way to modernize payment systems and reduce transaction costs.

Critics, however, warn of potential risks. They argue that central bank digital currencies could expand the government’s ability to monitor financial activity. This concern is increasingly shaping political debate in Washington and may influence future congressional decisions on CBDCs.

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