US Housing Bill Includes Digital Currency Ban
The U.S. Senate is advancing a bipartisan housing affordability bill that notably includes a ban on a central bank digital currency (CBDC) before 2031. This move reflects a growing international trend of linking housing policy with digital finance regulation, a potential signal for future EU and Dutch debates on digital rent or mortgage systems.
The temporary CBDC ban is a two-page provision within the 303-page "21st Century ROAD to Housing Act". This bipartisan bill, co-sponsored by key figures from the Senate Banking Committee, primarily aims to reduce regulatory hurdles for housing construction in the United States. The White House has expressed support for the CBDC clause, citing potential threats to individual privacy and freedom. This legislative move reflects concerns that a retail CBDC could lead to "digital runs" on commercial banks during times of instability, as customers might rapidly move funds to the perceived safety of the central bank. Proponents of CBDCs, however, argue they could enhance financial inclusion, reduce transaction costs, and provide a public alternative to private payment providers, thereby increasing competition. In contrast to the U.S. prohibition, the European Central Bank (ECB) is advancing with its digital euro project, which is now in a "preparation phase." A decision on issuance awaits the adoption of necessary EU legislation, with a potential pilot as early as 2027 and a full rollout targeted for 2029 if regulations pass in 2026. The ECB's initiative aims to reinforce European monetary sovereignty in an increasingly digital payment landscape. The Netherlands is currently focused on tackling its housing shortage, aiming to build 900,000 new residences by 2030 through centralized planning agreements with its provinces. This effort is complicated by challenges such as nitrogen emission regulations, which have stalled numerous construction projects. The Dutch government is also aligning with the EU's DAC8 directive to enhance transparency on digital asset holdings for tax purposes, with new rules expected to take effect in January 2026. The Association of Netherlands Municipalities (VNG) actively supports the digitalization of local government to improve public services and foster more transparent governance. While not directly addressing CBDCs, the VNG's focus on digital transformation, e-services, and data-driven decision-making provides a framework for how municipalities might eventually engage with new forms of digital finance and data.
