The US House has added a provision to the National Defense Authorization Act to prevent the Federal Reserve (CBDC) from launching a central bank digital currency (CBDC).
In July, the House passed a similar Republican-backed bill, the Anti-CBDC Oversight Act, by a narrow 219–210 vote. However, its outcome is still unclear in the future.
Meanwhile, the National Defense Authorization Act is a must-pass law because it sets annual military spending and funding.
It is common practice in Congress to insert non-defense-related provisions into this bill to ensure that it would not be delayed or rejected if brought separately.
Previously, the chances of passing a separate bill to ban CBDCs were considered slim due to lack of support.
The debate could only continue after House Majority Leader Steve Scalise gave assurances that the CBDC ban would be included in the National Defense Authorization Act.
