---
kind: "section"
citation: "12 U.S.C. § 423"
title: "12"
title_heading: "Banks and Banking"
number: "423"
heading: "Central bank digital currency"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/423"
units:
  - "Chapter 3 — Federal Reserve System"
  - "Subchapter XII — Federal Reserve Notes"
---

# §423. Central bank digital currency

- (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](/usc/12/5901.md).
- (b) **Prohibition—** Except as provided in [subsection (c)](#c), the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System or a Federal [reserve bank](/usc/12/221a.md?p=a) 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)](#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](/usc/12/221a.md?p=a) 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.

## Source credit

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