Washington is burying the digital dollar for six years

The Trump group internally hates CBDC. Biden’s team dreamed of a digital dollar led by the Fed. The new masters of Congress prepare a funeral: first-class, with flowers and speeches. And guess where they slipped the coffin? To a huge housing bill. A law that no one would dare sink for fear of being seen as an enemy of families. The movement has a rare elegance.

Three-cushion pool shot of the crowd against the CBDC

A few years ago, it was reported that 98% of the global economy is interested in CBDCs. But Donald Trump’s America differs from this group. The idea comes from House conservatives. They have been calling for a total ban on the digital dollar for months. Their arguments? Privacy, surveillance, the specter of the state controlling every transaction. They negotiate secretly with their colleagues. Pledge to vote for more crypto banknotes.

In exchange, they are guaranteed to include their measure in a major bill. We’re headed for the NDAA, the Defense Act. Then change of schedule without prior notice. Their amendment ends in “the law on the path to housing in the 21st century”. The bipartisan housing bill passed by 84 senators against 6.

Burgess Everett, a journalist, tweeted: “84-6, Senate advances bipartisan housing bill. You don’t see a vote like that every day.” The amendment remains largely unnoticed. Nevertheless, it will lock the American position for six years.

CBDC ban: Fed silenced until 2030

The text is brutally clear. The Fed can’tissue or create central bank digital currency or any substantially similar digital asset“Banned until December 31, 2030. Eleanor Mueller, a journalist, confirms:

Senators included this CBDC ban in today’s threatened housing legislation at the request of House Republicans.

The Fed, which has repeatedly said it would not issue anything without Congressional approval, finds itself with its hands tied. The language is broad, it cannot be circumvented by a “substantially similar” asset. The Trump White House confirms. The president will sign it, the statement said.

Brendan Pedersen tweeted: “The White House is quick to issue a statement that it SUPPORTS the law, praising the institutional investor ban as well as the digital currency ban.“.

The verdict is in

Meanwhile, China is proceeding without complications

The anti-CBDC crowd won their ideological crusade. No more digital dollars, no more government surveillance. Libertarians rejoice. Still, the pebble in the shoe worries them.

In Beijing, the digital yuan does not wait. It is deployed, tested and promoted in exchanges. Europe is also exploring its digital currency. The ECB is proceeding cautiously but decisively.

Meanwhile, the private stablecoins, USDC and USDT, rule the US crypto market without a problem. They strengthen their throne without public competition. So the burning question: can the dollar remain king without a digital version? When China fully deploys theirs, when international exchanges are in programmable yuan, will America regret its choice?

The battle was ideological. War is geopolitical. And in this field, the United States may have just played a strong card.

CBDC ban in key figures

• 84 to 6 votes: massive Senate score for housing bill;
• By 2030: the ban is in place for six years, well beyond Trump’s term;
• 0 public debate: the amendment went unnoticed in the giant text;
• 100% of transactions: what the Fed won’t be able to trace with a digital dollar;
• Billions of digital yuan: already in circulation in an advancing China.

Cryptocurrency enthusiasts have never seen interest in CBDC. They prefer their stablecoins, their bitcoins, their freedoms. Meanwhile, Ray Dalio warns: China, India and the ECB dream of increased state financial control. So far, America is saying no. But on the global chessboard, this rejection could soon come to an end.

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The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.