Congress blocks Federal Reserve from issuing digital currency to citizens
H.R. 1430 — No CBDC Act · Filed by Andrew Ogles (R-TN) · Introduced Feb 18, 2025 · Referred to committee
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What it does
This bill amends the Federal Reserve Act to prohibit the Federal Reserve, the Treasury Department, and related agencies from creating, issuing, or distributing a central bank digital currency (CBDC) directly to individuals or businesses. It also bars the Federal Reserve from holding or using government-issued digital currencies on its balance sheet or as part of its monetary policy operations.
Why we flagged it
The bill is a direct statutory prohibition on a specific Federal Reserve power—the issuance of central bank digital currency. It is not a tax measure, appropriation, or regulatory carve-out, but rather a constraint on monetary policy authority.
What the text implies
- Blocks not only direct CBDC issuance but also indirect distribution through custodial intermediaries and digital currency intermediaries, closing potential workarounds.
- Prevents Federal Reserve from holding government-issued digital currencies as assets, which could limit the Fed's ability to participate in future interbank digital settlement systems.
The full analysis lists 4 implications of this text.
Who stands to gain
payment processors (Visa, Mastercard, PayPal, Square); commercial banks (reduced competition from government digital payment option); private stablecoin issuers