H.R. 5403 would prohibit Federal Reserve banks from:
Providing products or services directly to individuals or maintaining an account on behalf of an individual,
Issuing a central bank digital currency to individuals, and
Using a central bank digital currency to implement monetary policy
The bill also would prohibit the Department of the Treasury from directing the Federal Reserve to issue a central bank digital currency.
CBO estimates that enacting the bill would not affect direct spending or revenues. That estimate is subject to considerable uncertainty, however. In particular, the bill’s prohibition on the Federal Reserve’s use or issuance of a central bank digital currency could apply to bank reserves, which are a unit of value and a liability of the Federal Reserve. The approximately $4 trillion in currently outstanding bank reserves constitute a key tool in the implementation of monetary policy. At this time, CBO cannot determine how the Federal Reserve and financial markets would respond to the bill’s prohibitions or whether the prohibitions would substantively affect the conduct of monetary policy.
