News
August 28, 2025
US House adds CBDC ban to defense budget bill
The SPEED Act and NDAA will now be scheduled for a vote in the House, and will head to the Senate and ultimately to the president's desk for approval.The post US House adds CBDC ban to defense budget bill appeared first on CoinGeek.
**US House Advances Defense Bill with CBDC Ban, Setting Stage for Potential Presidential Veto**
The United States House of Representatives has taken a significant step towards restricting the development of a central bank digital currency (CBDC) by adding a ban to the National Defense Authorization Act (NDAA). This move, initially reported by CoinGeek, signals growing concerns among lawmakers regarding the potential impact of a government-controlled digital currency on financial privacy and the existing banking system.
The amendment, incorporating the "State Payment Efficiency and Economy Act" (SPEED Act), aims to prevent the Federal Reserve from issuing a CBDC directly to individuals. Proponents of the ban argue that a CBDC could give the government unprecedented control over citizens' financial transactions, raising serious privacy concerns and potentially undermining the role of commercial banks.
The NDAA, a massive piece of legislation that authorizes defense spending and sets policy for the Department of Defense, is considered "must-pass" legislation. The inclusion of the CBDC ban within this bill significantly increases its chances of becoming law. However, the path forward is not without obstacles.
Following the House vote, the amended NDAA will proceed to the Senate, where it will face further debate and potential amendments. Any differences between the House and Senate versions must be reconciled before the final bill can be sent to the President for approval.
The potential for a presidential veto looms large. The Biden administration has previously expressed interest in exploring the potential benefits of a CBDC, although they have also emphasized the need to address privacy and security concerns. It remains to be seen whether the President would veto the entire defense bill over the inclusion of the CBDC ban, a decision that would have significant political and economic ramifications.
The debate surrounding CBDCs is complex and multifaceted. Supporters argue that a digital dollar could improve payment efficiency, reduce transaction costs, and enhance financial inclusion. Critics, on the other hand, warn of potential risks to privacy, financial stability, and the role of the private sector in the financial system. The upcoming Senate vote and the potential for a presidential veto will be crucial in determining the future of CBDCs in the United States.
The United States House of Representatives has taken a significant step towards restricting the development of a central bank digital currency (CBDC) by adding a ban to the National Defense Authorization Act (NDAA). This move, initially reported by CoinGeek, signals growing concerns among lawmakers regarding the potential impact of a government-controlled digital currency on financial privacy and the existing banking system.
The amendment, incorporating the "State Payment Efficiency and Economy Act" (SPEED Act), aims to prevent the Federal Reserve from issuing a CBDC directly to individuals. Proponents of the ban argue that a CBDC could give the government unprecedented control over citizens' financial transactions, raising serious privacy concerns and potentially undermining the role of commercial banks.
The NDAA, a massive piece of legislation that authorizes defense spending and sets policy for the Department of Defense, is considered "must-pass" legislation. The inclusion of the CBDC ban within this bill significantly increases its chances of becoming law. However, the path forward is not without obstacles.
Following the House vote, the amended NDAA will proceed to the Senate, where it will face further debate and potential amendments. Any differences between the House and Senate versions must be reconciled before the final bill can be sent to the President for approval.
The potential for a presidential veto looms large. The Biden administration has previously expressed interest in exploring the potential benefits of a CBDC, although they have also emphasized the need to address privacy and security concerns. It remains to be seen whether the President would veto the entire defense bill over the inclusion of the CBDC ban, a decision that would have significant political and economic ramifications.
The debate surrounding CBDCs is complex and multifaceted. Supporters argue that a digital dollar could improve payment efficiency, reduce transaction costs, and enhance financial inclusion. Critics, on the other hand, warn of potential risks to privacy, financial stability, and the role of the private sector in the financial system. The upcoming Senate vote and the potential for a presidential veto will be crucial in determining the future of CBDCs in the United States.
Category:
Politics