Title 12, Banks and BankingRelease 119-102
§423 Central Bank Digital Currency
Title 12 › CHAPTER 3 — FEDERAL RESERVE SYSTEM › SUBCHAPTER XII — FEDERAL RESERVE NOTES › § 423
Full Legal Text
Title 12, §423
Banks and Banking, Source: USLM XML via OLRC
(a)In this section:
(1)The term “central bank digital currency” means a digital asset that—
(A)is denominated in United States dollars;
(B)is a United States currency;
(C)is a direct liability of the Federal Reserve System; and
(D)is widely available to the general public.
(2)The term “digital asset” has the meaning given the term in section 5901 of this title.
(b)Except as provided in subsection (c), the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.
(c)Subsection (b) shall not prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.
(d)This provisions of this section shall cease to be effective on December 31, 2030.
(e)Nothing in this section shall be construed to allow the Board of Governors of the Federal Reserve System to issue a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly absent authorization by an Act of Congress.
Reference
Citations & Metadata
Citation
12 U.S.C. § 423
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102