Senate Bill Would Ban Federal Reserve from Developing a Digital Dollar

If Congress passes the bill and the President signs it, the Federal Reserve must stop any CBDC testing, study, development, creation, or implementation.

Any official CBDC pilot, research program, or build-out would have to be ended or redirected, which reduces the chance that the public will ever be offered a Fed-issued digital dollar.

Federal reserve banks would be barred from offering accounts or other direct-to-person services tied to a CBDC concept.

Regular people would not be able to open a Fed-run consumer account or wallet for a digital dollar, even if they wanted one.

A CBDC could not be offered to the public through banks, credit unions, or other intermediaries.

Even a “two-step” design (Fed creates CBDC, banks distribute it) would be blocked, so banks would not roll out CBDC balances to customers.

The Federal Reserve and the Federal Open Market Committee would be barred from using a CBDC to run monetary policy.

Interest-rate and money-policy tools would continue to rely on existing systems rather than CBDC-based mechanisms (for example, no CBDC-based policy feature aimed at households).