§423. Central bank digital currency

12 U.S.C. § 423

(a)

Definitions— In this section:

(1)

Central bank digital currency— 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)

Digital asset— The term “digital asset” has the meaning given the term in section 5901 of this title.

(b)

Prohibition— 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)

Exception— 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)

Sunset— This provisions of this section shall cease to be effective on December 31, 2030.

(e)

Rule of construction— 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.

Notes, amendments, and revision history

(Dec. 23, 1913, ch. 6, § 16A, as added Pub. L. 119–101, title XI, § 1101, July 11, 2026, 140 Stat. 983.)