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Title 12 — Banks and Banking

Chapter 3 — Federal Reserve System

§ 423. Central bank digital currency

Statutory text

(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 .

(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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Pub. L. 119–101 title XI § 1101 · 140 Stat. 983

    Enacted · 12 U.S.C. § 423

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

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

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

0 of 1 references resolved to an enrolled provision · 1 unresolved

Credits

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

Parsed from the official OLRC USLM XML in data/usc_all/usc12.xml · release point 119-108 · OLRC build 2026-07-23

USLM identifier /us/usc/t12/s423