No CBDC Act
Summary
The No CBDC Act, currently under committee consideration in the Senate, would prevent the Federal Reserve Board, Federal Reserve Banks, the Department of the Treasury, and other federal agencies from issuing, developing, or using a central bank digital currency (CBDC). A CBDC would be a digital form of money issued directly by the central bank, similar to physical currency but in electronic form.
If enacted, this bill would block the federal government from creating or implementing such a digital currency system. This could affect potential future financial infrastructure changes, as some policymakers and central banks worldwide have explored CBDCs as a way to modernize payment systems. For everyday citizens, this would mean the government could not require or transition the public to a federally-issued digital currency, though it would not affect private digital payment systems or cryptocurrencies.
The bill has been introduced but has not yet been voted on by the full Senate. Its passage would require approval by both chambers of Congress and the President's signature to become law.