According to Fox News, US lawmakers have abandoned efforts to include a ban on a central bank digital currency in the final 2025 National Defense Authorization Act (NDAA), a move that preserves the possibility of a future digital dollar. The decision came as negotiators released a $900 billion defense package that focuses heavily on countering China through investment restrictions, technology bans and new intelligence capabilities.
Republicans had pushed for an explicit prohibition on a CBDC, framing the issue as a civil liberties matter. They argue that a government issued digital currency could allow federal agencies to monitor or restrict individual payments, a fear that has become a core talking point among conservative privacy advocates. However, House aides said the anti CBDC language became tied to a broader housing bill known as the Road to Housing package, and the concessions needed to keep the measures linked were deemed unacceptable.
The NDAA’s exclusion of the CBDC ban marks a significant moment in Washington’s evolving digital currency debate. Although the Biden administration previously signalled interest in exploring a digital dollar, the Trump administration has taken a more skeptical stance. Republican leaders such as House Judiciary Committee Chair Jim Jordan have warned that a CBDC could expand government power in ways incompatible with constitutional privacy protections.
Debate Likely to Intensify in 2026
The decision not to block a CBDC keeps regulatory and political options open. It also ensures that the Federal Reserve, which has conducted research but insists it would not issue a digital dollar without congressional approval, remains central to the conversation.
While CBDCs have gained traction globally, including in Europe and Asia, US lawmakers remain divided. Supporters argue that a digital dollar could preserve US monetary leadership, strengthen payment resilience and compete with foreign CBDCs. Critics warn that such systems, depending on design, could undermine civil liberties.
The NDAA outcome is likely to feed Republican campaign narratives heading into 2026, particularly as privacy concerns rise in parallel with expanding state and federal interest in digital surveillance tools. It also places the US behind the European Union and China, both of which continue advancing CBDC architectures.
Implications for Europe
European policymakers will view the US debate closely. As the ECB moves toward a pilot phase for the digital euro, the lack of US clarity could influence transatlantic cooperation on digital currency standards, privacy frameworks and interoperability. A fragmented policy landscape may also affect cross border payment innovation, especially if the US delays establishing a regulatory position on CBDCs.
Congress is expected to vote on the NDAA in the coming days before sending the legislation to President Donald Trump for signature. The CBDC debate, however, has only begun.