12 USC 423: Central bank digital currency
Result 1 of 1
   
 
12 USC 423: Central bank digital currency Text contains those laws in effect on July 25, 2026
From Title 12-BANKS AND BANKINGCHAPTER 3-FEDERAL RESERVE SYSTEMSUBCHAPTER XII-FEDERAL RESERVE NOTES
Jump To: Source Credit

§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.

(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.

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