Prohibition with respect to central bank digital currency

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting before paragraph (12) the following: (11) Prohibition with respect to central bank digital currency (A) In general The Board of Governors of the Federal Reserve System may not test, study, develop, create, or implement a central bank digital currency, or any digital asset that is substantially similar under any other name or label. (B) Monetary policy The Board of Governors of the Federal Reserve System and the Federal Open Market Committee may not use a central bank digital currency to implement monetary policy, or any digital asset that is substantially similar under any other name or label. (C) Exception Subparagraph (A) and sections 16(18)(A)(iii) and 16(19)(A) may not be construed to 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) Central bank digital currency defined In this paragraph, the term central bank digital currency means a form of digital money or monetary value that is— (i) denominated in the national unit of account; (ii) a direct liability of the Federal Reserve System; and (iii) widely available to the general public..