Republican opposition to CBDC could hold up housing affordability bill

10/03/2026 admin

Republicans in the US Congress want to ban any possibility of a central bank digital currency (CBDC). To do so, they’re threatening progress on a bipartisan housing bill.

A group of Republican members of the US House of Representatives wrote a letter dated March 6, expressing the “dire need to prohibit a Central Bank Digital Currency from ever happening in the United States.”

The letter cited familiar arguments claiming a CBDC would threaten financial privacy and grant the US Federal Reserve unprecedented financial surveillance powers.

Critics question why Republicans are so eager to ban a CBDC, particularly as other global economic centers like the European Union and China develop their own digital forms of money. Still, the Republicans are ready to pull support from a bipartisan housing bill to get their way.

Republicans hang CBDC ban on 21st Century ROAD to Housing Act

Twenty-eight Republican representatives signed a letter to House Speaker Mike Johnson. In it, they noted that the 21st Century ROAD to Housing Act, a bill making its way through the Senate Banking Committee, contained a provision that would ban CBDCs.

But the lawmakers said it wasn’t strong enough. The ban would sunset in 2030, they noted, adding that the new language does not prohibit the Fed from studying a CBDC, which a bill introduced last year by Minnesota Rep. Tom Emmer sought to block.

The representatives demanded that both provisions be removed in the Senate before the bill reaches the House, claiming that a “prohibition on a Central Bank Digital Currency must be permanent.” If not, they threatened the success of the housing bill:

Otherwise, we will do everything to ensure that the 21st Century ROAD to Housing Act is dead-on arrival.”

Republican Representative Anna Paulina Luna said, “This will probably get nasty so I am telling everyone now. We would appreciate your air support on this.”

This move puts a still-niche and relatively unknown monetary question onto a bill that would at least nominally address concerns over housing affordability in the US.

According to a June 2025 survey from fintech firm Aevi, 61% of Americans haven’t even heard of a CBDC. The number is even higher among older respondents, with over 70% of 55- to 64-year-olds having never heard of one.

Meanwhile, housing costs in the US are getting higher. Data from the Fed and the S&P/Case-Shiller Home Price Index collated by LongtermTrends shows that a typical single-family home currently costs 7.14 times the median annual household income.

This is the highest home price-to-median household income ratio on record going back to the late 1940s, higher than at the height of the 2006 housing bubble.

Part of this is due to a supply squeeze. Homebuilding crashed after the 2008 financial crisis. This has continued to decline during the second Trump administration.

The new, bipartisan 21st Century ROAD to Housing Act contains several proposals to make building new housing easier and therefore cheaper. This includes expedited environmental reviews and increased Federal Housing Administration family loan limits.

“The package includes the vast majority of the Senate’s unanimously supported ROAD to Housing Act, incorporates bipartisan housing ideas from the House, and takes a good first step to rein in corporate landlords that are squeezing families out of homeownership,” Senator Elizabeth Warren said in a statement.

The presidential administration has already signaled its support of the bill, including a ban on CBDCs.

Holding up a housing affordability bill over a CBDC, something voters know very little about, may not play well, especially as President Donald Trump and Congress slip in the polls and the economy remains a central concern.

Does the US need a CBDC to ensure the dollar stays on top?

Republicans claim to be concerned about the privacy implications of a CBDC, and they aren’t alone. Regarding the digital euro, the European Central Bank’s planned CBDC, Luxembourg-based economist Elisabeth Krecké said that it’s unclear how the tradeoff between privacy and functionality could be managed.

“The digital euro drafters simply assert that Europe’s legal framework offers the ‘strongest privacy protections in the world,’” she said. “The real question is: What happens to the data in the end? Who will have access to it and, ultimately, who will control it?”

Democrats are far less skeptical of a CBDC than their Republican colleagues. Particularly as, according to Krecké, over 90% of the world’s central banks are investigating the technology.

In a criticism of Emmer’s early efforts to ban a CBDC, Congresswoman Maxine Waters said in a statement, ”When Republicans raise concerns about CBDCs they are talking about retail CBDCs, but because they are so averse to knowledge and studying things, they have no idea that their bill blocks research into other forms of digitizing the dollar that could truly cut costs for people.”

She added that with a functional and operating digital currency, China could provide an attractive alternative to the dollar as the global reserve currency.

Congress is still hammering out the details of the CLARITY Act, the long-awaited crypto framework bill, and now the future of a CBDC is being balanced with more affordable housing ahead of a midterm election.

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