Central bank digital currency

The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by inserting after section 16 (12 U.S.C. 411 et seq.) the following: 16A. 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 2 of the GENIUS Act (12 U.S.C. 5901). (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 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..