Bars the Federal Reserve from creating or issuing a central bank digital currency

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

This bill would bar the Federal Reserve from issuing a central bank digital currency, meaning a digital form of the dollar that is a direct obligation of the Federal Reserve and widely available to the public, or any substantially similar digital asset, whether directly or through banks and other intermediaries.^2,3,4 The Federal Reserve's regional banks also could not offer financial products or services directly to individuals or hold accounts for them, and the Federal Reserve Board could not test, study, develop or create such a currency or use one to carry out monetary policy.^2,3 The version the House passed states that these bans do not prohibit a dollar-denominated currency that is open, permissionless and private and keeps the same privacy as coins and paper money, and it states Congress's view that the Federal Reserve lacks authority to issue a digital currency unless Congress grants it.³

§2Status

§3How Congress voted

Why this matters: The official count.