Permanent CBDC Ban Act

This legislation aims to establish a permanent prohibition on the creation or issuance of a central bank digital currency (CBDC) by the Board of Governors of the Federal Reserve System or any Federal Reserve bank. Its primary goal is to prevent the United States from developing or implementing a digital form of its national currency, ensuring that such a system cannot be introduced in the future. The bill achieves this by amending Section 16A of the Federal Reserve Act . Specifically, it strikes subsection (d) and redesignates subsection (e) as subsection (d), thereby removing any existing provisions that might allow for or pertain to the issuance of a CBDC. This legislative action is designed to permanently restrict the Federal Reserve's authority regarding digital currencies.