Congress Stands Against CBDC to Protect Economic Freedom, Backs Stablecoin Future

U.S. Congressional action has blocked the development of a federal central bank digital currency (CBDC), marking a pivotal shift in the country's approach to digital finance. A crucial vote in the House of Representatives stalled progress on the initiative, aligning with broader policy priorities of promoting private-sector innovation and reinforcing the dominance of the U.S. dollar in digital transactions. The decision reflects a deliberate strategy to avoid the adoption of a government-issued digital currency, favoring instead the growth of stablecoins and private-sector-led advancements in digital payments.

This regulatory choice follows significant developments in the U.S. digital asset landscape. In July 2025, President Trump signed the GENIUS Act, which established the first comprehensive federal regulatory framework for payment stablecoins. The legislation aims to promote a robust and competitive stablecoin ecosystem by providing clarity on licensing, reserve requirements, and compliance obligations for issuers. The law delegates key implementation responsibilities to federal banking agencies, ensuring that the regulatory environment remains supportive of innovation while maintaining financial stability and consumer protection.

The White House also released a policy report titled “Strengthening American Leadership in Digital Financial Technology,” which outlines a broader strategy for digital assets and their integration into the U.S. financial system. The report emphasizes the importance of fostering innovation, reducing regulatory overreach, and ensuring that the U.S. remains a global leader in digital finance. It explicitly prohibits the development of a U.S. CBDC, arguing that such a move would centralize control and infringe on individual economic and privacy rights. Instead, the administration advocates for the expansion of dollar-backed stablecoins as a more decentralized and privacy-preserving alternative.

The report highlights the growing role of stablecoins in cross-border and retail payments, noting their potential to improve efficiency and accessibility. By leveraging distributed ledger technology, stablecoins offer 24/7 availability, fast transferability, and the ability to maintain the value of the U.S. dollar globally. The GENIUS Act is expected to accelerate the adoption of these tokens, creating a multitrillion-dollar industry as demand for digital payment solutions expands.

Goldman Sachs has predicted a potential “stablecoin gold rush,” forecasting significant growth in the stablecoin market. The bank estimates that the stablecoin industry could expand to trillions of dollars, driven by regulatory clarity, increased adoption, and the potential for these tokens to support demand for U.S. Treasuries. U.S. Treasury Secretary Scott Bessent has expressed optimism about this potential, stating that stablecoins backed by high-quality assets will bolster the dollar’s global standing and increase demand for government bonds.

Despite the enthusiasm for stablecoins, concerns remain about their potential impact on traditional financial services. However, analysts suggest that rather than displacing legacy systems entirely, stablecoins are more likely to complement existing infrastructure, particularly in interbank payments and cross-border transactions. Goldman Sachs’ report notes limited threats to payment service providers such as Visa and Mastercard, which are expected to adapt to the new landscape by facilitating stablecoin transactions at scale.

The decision to block a U.S. CBDC aligns with broader geopolitical and regulatory strategies. The report criticizes central bank digital currencies as tools for consolidating state control and undermining individual economic freedoms. While countries such as China and the European Union continue to explore their own CBDC initiatives, the U.S. government has chosen a different path, prioritizing private-sector leadership and technological innovation.

As the digital asset ecosystem continues to evolve, the U.S. approach underscores a commitment to balancing regulatory oversight with market-driven growth. The focus on stablecoins and private-sector innovation reflects a strategic vision for maintaining the U.S. dollar’s global dominance while fostering a competitive and resilient financial system. With the GENIUS Act in place and the White House report setting a clear policy direction, the future of digital payments in the U.S. appears to be firmly anchored in private-sector leadership rather than state-backed alternatives.

Source:

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