U.S. Lawmakers Push Permanent CBDC Ban as 2031 Housing Act Advances

- Rep. Michael Cloud and 27 lawmakers demand a permanent CBDC ban, opposing the 21st Century ROAD to Housing Act’s temporary restrictions. - International CBDC developments, including China's digital yuan and the proposed digital euro, raise geopolitical stakes. A coalition of 28 U.S. lawmakers, led by Congressman Michael Cloud, is demanding a permanent ban on the Federal Reserve issuing a Central Bank Digital Currency (CBDC). This push opposes the proposed 21st Century ROAD to Housing Act, which only suggests a temporary pause on CBDC development until December 31, 2031. The lawmakers cite concerns about potential government overreach and the risks of unconstitutional financial surveillance. On March 8, 2026, Cryptopolitan reported that Rep. Cloud and 27 congressional colleagues sent a letter to House and Senate leaders urging definitive action. The letter criticized the proposed temporary restriction as insufficient, warning that permitting CBDC development, even temporarily, could centralize control over the financial system and threaten Americans’ economic liberties and privacy. In the March 8 letter, the lawmakers wrote, “If implemented, a CBDC could give unregulated power to unelected officials, enabling financial monitoring and even exclusion from the system based on political motivations.” The U.S. debate over CBDCs comes as other major economies advance rapidly in this space. European Union officials are developing a digital euro that could roll out by 2029. Meanwhile, China’s digital yuan continues to set global benchmarks in CBDC implementation. With increasing transaction volumes, China remains the leader in testing and deploying state-controlled digital currencies, which sparks geopolitical competition in monetary innovation. In a related commentary, billionaire investor Ray Dalio called global CBDC adoption inevitable. However, he expressed concern that governments could wield these currencies to centralize financial control. Dalio warned of potential misuse, including governments targeting individuals for exclusion from financial systems based on political considerations. The final decision on the CBDC provision in the 21st Century ROAD to Housing Act will have widespread implications for the future of U.S. monetary policy and financial privacy. As lawmakers weigh the issue, the nation must decide whether to pursue a temporary pause or a permanent ban on CBDC development.