7:05 AM ▪
5
min read ▪ by
In the United States, the idea of a currency fully controlled by the state triggers visceral reactions. Many citizens reject this tracking tool disguised as a simple electronic wallet. Politicians have definitely settled this debate. In a unanimous vote, the Senate said no to the Fed’s digital dollar. A brilliant victory is now looming for privacy advocates. A slap in the face to the central bank technocrats.
In short
- The US Senate voted 89 to 10 to ban CBDCs until December 2030.
- The anti-CBDC amendment is hidden in the 302-page housing bill.
- Ralph Norman condemns technology that would give unprecedented power to unelected bureaucrats.
- Private stablecoins like USDC are specifically excluded from this government ban.
89 votes to 10: Senate buries CBDC by 2030
The score reaches values exceeding all forecasts of political observers. By a vote of 89 to 10, the US Senate formally banned the Federal Reserve from issuing a central bank digital currency. This ban is in effect until December 31, 2030, meaning five full years without a sovereign digital dollar in the territory.
Most are overwhelming, almost insulting to proponents of programmable money. But the most surprising aspect lies beyond these numbers. This ban does not travel alone through the halls of the US Congress. It is attached like a carriage to the “21st Century ROAD to Housing Act,” a massive affordable housing bill.
A 302-page legislative package where the future of money is hidden in the last lines of the text. Senators voted for homes affordable for the hard-working middle class. They are also, perhaps unknowingly, setting the death knell for the digital dollar for an entire decade.
The maneuver is smart both tactically and politically. Now he’s forcing the House of Representatives to come clean on this hot topic.
Crypto revolt against CBDC: Ralph Norman’s ‘control mechanism’
Ralph Norman never minces words when it comes to defending basic individual freedoms. The representative, one of thirty signatories to the Senate letter, sums up the fear-mongering opponents:
A CBDC would give unelected bureaucrats unprecedented power over Americans’ finances and threaten basic economic freedom.
Ray Dalio, the famous hedge fund manager, delivers with equal force on the underlying problem. “There will be no privacy and it is a very effective government control mechanism“, he said in an interview with Tucker Carlson. Programmable money would allow accounts to be taxed, frozen or monitored in real time without any oversight.
“Technology of authoritarian surveillance” becomes a bogeyman uniting politicians otherwise at odds. Warren Davidson himself, a critic of both parties, warns that over-regulated stablecoins could become CBDCs in disguise. Fears of state control now transcend traditional party divisions.
Strategic exception: stablecoins as America’s new weapon
The text approved by the Senate contains a subtlety that changes the entire global geopolitical game. The ban does not apply to “open, permissionless and private” digital currencies, according to the exact terms of the amendment. Dollar-pegged stablecoins are officially invited to the upcoming major currency party.
Scott Bessent, the Treasury Secretary, and Donald Trump see much further than a simple domestic market. For them, these private tokens are a means to extend the dollar’s hegemony over China’s digital yuan. A huge geopolitical weapon, disguised as a harmless and attractive financial innovation.
The administration thus buries state money, but encourages private money competition. A Hayekian vision put to the service of American public power. However, uncertainty remains for procedural and legislative reasons. Trump threatens to sign no law without voter ID text. The House can torpedo the entire facility if it wishes.
The digital dollar has been dead for five years, but there’s no telling that this strange legislative marriage will survive weeks of intense negotiations.
Historical vote on key figures
- 89 senators voted to ban CBDC, against only 10 staunch opponents;
- December 31, 2030 is the deadline by which the Fed cannot issue digital currency;
- The housing bill containing the major amendment was 302 pages long;
- 30 representatives signed a letter calling for a permanent ban on the digital dollar;
- 0 digital dollar will see the light of day before the end of the current American decade.
Americans do not reject all digital currencies. They just approved Elon Musk’s X Money in their territory. A famous economist claims that this project could surpass Bitcoin at a key point. The difference is simple: they embrace private innovation. They only reject state control masquerading as technical progress.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
