US Republican Lawmakers Push Permanent Ban on Fed CBDC

A central bank digital currency, or CBDC, is digital fiat money issued directly by a central bank. The Federal Reserve has not launched a digital dollar, but Republican lawmakers fear the government could use its transaction records for surveillance. Trump signed an executive order on January 23, 2025, barring federal agencies from advancing a CBDC. Enshrining the ban in law would prevent a future administration from unilaterally reversing the policy.

On May 19, 2026, Republican Representatives Mike Flood and Warren Davidson called for an amendment to the 21st Century ROAD to Housing Act that would permanently prohibit the Federal Reserve and regional Federal Reserve Banks from designing, testing or issuing a CBDC. The Senate version imposes a ban only through December 31, 2030. The House was expected to vote during the week of May 18, and an amended bill would still need to return to the Senate for consideration.