§423 Central Bank Digital Currency

Summary

The law stops the Federal Reserve and its regional banks from creating or issuing a central bank digital currency or any very similar digital asset, either directly or through banks or other middlemen. It does allow a dollar-based digital currency that is open, permissionless, private, and that fully keeps the same privacy as U.S. coins and cash. These rules end on December 31, 2030. The Fed still cannot issue such a currency unless Congress specifically authorizes it. Definitions: central bank digital currency — a U.S. dollar digital asset that is U.S. money, a direct Fed liability, and widely available to the public; digital asset — defined in section 5901.