(C) PHASE 2.—Phase 2 of the pilot pro-
gram shall consist of at least one large-scale de-
ployment to a segment of the public (in this 
section referred to as ‘‘Field Test Pilots’’), 
which shall launch no later than 2 years after 
the enactment of this Act, and run for no 
longer than 2 years thereafter. 
(D) EXTENSION OF TIMELINES FOR PILOT 
PROGRAMS.—The timelines for the implementa-
tion of the two phases of the e-cash pilot pro-
gram described in this paragraph may be ex-
tended upon a determination by the Director 
that such an extension is necessary to ensure 
the security and integrity of the technologies to 
be piloted in the program. 
(2) ADMINISTRATION.— 
(A) IN
GENERAL.—The pilot programs 
shall be administered by the Director, in coordi-
nation with the Digital Dollar Council, and sub-
ject to the ongoing oversight and review of the 
Monetary Privacy Board. 
(B) PROOF-OF-CONCEPT
PILOTS.—Proof- 
of-Concept Pilots may be conducted— 
(i) in partnership with one or more 
universities, non-profit entities, insured fi-
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nancial institutions, non-bank payment 
providers aimed at promoting financial in-
clusion, technology-focused financial firms 
and companies, financial technology com-
panies, or foreign central banks; and 
(ii) through, or in partnership with, 
any existing Federal, State, or local gov-
ernment fund disbursement and payments 
program, including those that rely on the 
U.S. Debit Card and Digital Pay Program, 
the EagleCash Card program, or any other 
payments technology offered by or in part-
nership with the Bureau of the Fiscal 
Service of the Department of the Treasury. 
(C) FIELD TEST PILOTS.—Field Test Pi-
lots may be conducted in partnership with any 
entity capable of partnering for a Proof-of-Con-
cept Pilot, as well as other departments, 
branches, agencies, and instrumentalities of the 
United States Government, or State, local, and 
foreign governments and international regu-
latory bodies. 
(3) OBJECTIVES.—The objectives of the pilot 
programs are to test the viability and capacity of 
various forms of e-cash technologies to— 
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(A) preserve the privacy, anonymity-re-
specting, and minimal transactional data-gener-
ating properties of physical currency instru-
ments such as coins and notes to the greatest 
extent technically and practically possible; 
(B) enforce total balance and transactional 
activity limits on a per-device basis without ren-
dering such devices vulnerable to surveillance or 
censorship by third parties including the United 
States Government; 
(C) deploy rapidly, securely, and efficiently 
on a mass scale; and 
(D) maintain ease of use and interoper-
ability with existing financial institution and 
payment provider systems, as well as any other 
digital dollar products. 
(4) PARAMETERS AND CONSTRAINTS.— 
(A) All technologies selected for Proof-of- 
Concept Pilots and Field Test Pilots shall be— 
(i) designed as bearer instruments; 
(ii) capable of instantaneous, final, di-
rect, peer-to-peer, offline transactions; and 
(iii) capable of being distributed di-
rectly to, and owned, held, and used di-
rectly by, the general public. 
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(B) At least two technologies selected for 
Proof-of-Concept Pilots shall be based on se-
cured hardware-based architectures for the pur-
poses of creation, distribution, holding, and 
payment that do not involve any common or 
distributed ledger. 
(C) At least one technology selected for 
Proof-of-Concept Pilots shall include a stored- 
value or pin card option for storage and pay-
ment of e-cash. 
(D) At least one technology selected for 
Proof-of-Concept Pilots shall include a cell 
phone or SIM card option for storage and pay-
ment of e-cash. 
(E) All technologies selected for Field Test 
Pilots shall have or at a minimum be capable 
of incorporating stored-value card functionality. 
(5) SPECIAL TENDER AUTHORITY.—In order to 
facilitate and promote the effectiveness of the pilot 
programs, the Secretary may grant special recogni-
tion of prototypical e-cash instruments issued under 
a pilot program as legal tender, and direct the 
Board of Governors of the Federal Reserve System, 
other departments, branches, agencies, and instru-
mentalities of the United States Government, any 
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other federally regulated financial institution to ac-
cept such prototypical e-cash instruments in settle-
ment of outstanding obligations on an at-par basis. 
(6) REPORTING.—Not later than 180 days after 
the date on which each phase of the pilot programs 
terminates, the Secretary shall submit to Congress a 
report regarding that phase of the pilot programs, 
which shall— 
(A) include— 
(i) a description of which elements of 
the pilot programs were successful and 
which were unsuccessful; 
(ii) recommendations regarding legis-
lative changes to the pilot programs and 
related authority under this Act and else-
where; and 
(iii) recommendations for additional 
pilots and revisions to the pilot program; 
and 
(B) make the nonsensitive analytical data 
available for public review and comment. 
SEC. 5. DIGITAL DOLLAR COUNCIL. 
(a) IN GENERAL.—The Secretary shall establish the 
Digital Dollar Council (in this section referred to as ‘‘the 
Council’’) to coordinate the Secretary’s ECIP-related ac-
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tivities with the efforts of other bureaus of the Depart-
ment of the Treasury and other departments, branches, 
agencies, and instrumentalities of the United States Gov-
ernment, including the Board of Governors of the Federal 
Reserve System and the United States Postal Service. 
(b) MEMBERSHIP.—The Council shall be comprised 
of the Secretary, the Director of ECIP, the Chairman of 
the Board of Governors of the Federal Reserve System, 
the Postmaster General of the United States Postal Serv-
ice, the Director of the Office of Science and Technology 
Policy, the Chief Technology Officer of the United States, 
and the Director of the National Institute of Standards 
and Technology, and any other Federal employees or rep-
resentatives of Federal agencies as the Secretary, in the 
Secretary’s discretion, determines to be appropriate. 
(c) LEADERSHIP.—The head of the Council shall be 
the Secretary, however, the Secretary may, at the Sec-
retary’s discretion, delegate administrative and decision- 
making responsibility to the Director. 
(d) AUTHORITY.—The Council shall have the power 
to redeploy personnel and resources among the various 
participating agencies, as well as establish or amend any 
rules and regulations promulgated by any participating 
agencies to the extent the Council determines such actions 
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to be necessary to achieve the goals and objectives estab-
lished under this Act. 
(e) JURISDICTION.—Nothing in this section shall be 
construed as taking away any powers heretofore or other-
wise vested by law in the Secretary, and wherever any 
power vested in the Council appears to conflict with the 
powers vested in the Secretary under this Act, such powers 
shall be exercised subject to the supervision and control 
of the Secretary. 
(f) JOINT REPORT.—Beginning 180 days after the 
date of enactment of this Act, and each 180 days there-
after, the Council and the National Institute for Stand-
ards and Technology shall issue a joint report to the Con-
gress detailing a plan to achieve full interoperability with 
existing public and private payments systems within 1 
year. 
SEC. 6. MONETARY PRIVACY BOARD. 
(a) IN GENERAL.—There is established a Monetary 
Privacy Board (in this section referred to as ‘‘the Board’’). 
(b) MEMBERSHIP.— 
(1) IN
GENERAL.—The Board shall be com-
prised of 5 members, appointed by the President, by 
and with the advice and consent of the Senate. 
(2) CHAIR.—The President shall appoint one 
member of the Board as the Chair of the Board. Ex-
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cept as provided under subsections (c) and (e), the 
Chair shall— 
(A) make all decisions of the Board with 
respect to staffing, hiring, and budget alloca-
tion; and 
(B) conduct the meetings of the Board. 
(3) TERM.—The term of each member of the 
Board is 3 years. 
(4) REMOVAL.—The President may remove a 
member of the Board from office. On removal, the 
President shall send a message to the Senate giving 
the reasons for removal. 
(5) INTERIM MEMBERS.—When a vacancy on 
the Board remains open for more than three 
months, the President may appoint an interim mem-
ber to fill that vacancy. Interim members shall enjoy 
the full powers and privileges of a full member until 
such time as a permanent member is appointed and 
confirmed. 
(c) MEMBER OFFICES.—Each member of the Board 
shall be entitled to spend 5 percent of the budget of the 
Board on the personal office and staff of the member. 
(d) DUTIES AND POWERS.— 
(1) IN GENERAL.—The Board shall review the 
actions and decisions of the Secretary, the Director 
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of ECIP, and ECIP generally on an ongoing basis 
to evaluate the extent to which their decisions are 
consistent with their statutory responsibilities under 
this Act, and more broadly, a general commitment 
to preserving the privacy interests of individuals and 
actors that use e-cash and other forms of digital dol-
lar technologies issued or administered by the 
United States Government. 
(2) SEMI-ANNUAL REPORT.—The Board shall 
issue a report to Congress no less than twice per 
year— 
(A) detailing its findings from its ongoing 
review process; 
(B) providing an assessment of the general 
state of monetary privacy in the United States; 
and 
(C) offering recommendations for how to 
better protect civil liberties and individual pri-
vacy interests through legislative and regulatory 
reform. 
(3) INTERIM REPORTS.—The Board, or one or 
more members thereof, may publish interim reports 
or any other communication at any time at their dis-
cretion, provided such reports and communications 
are clearly distinguished from the reports required 
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under paragraph (2), and the particular authors and 
co-signatories are clearly indicated. 
(e) FUNDING AUTHORITY.—The Board shall submit 
an annual budget request to the Secretary, and the Sec-
retary shall transfer the requested amount to the Board, 
using the authorities provided under section 7(b), unless 
the Secretary determines that the amount is unreasonable 
in light of the Board’s duties and powers under this Act. 
SEC. 7. ENABLING AUTHORITY. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this Act. 
(b) FINANCING.— 
(1) FUND
ACCOUNT.—The Federal Reserve 
Bank of New York shall establish a new account on 
behalf of the Secretary, called the ‘‘Treasury Elec-
tronic Currency Innovation Fund Account’’ (in this 
section referred to as the ‘‘Fund Account’’). 
(2) USE OF FUND ACCOUNT.—The Secretary 
shall effectuate any and all spending under this Act 
by drawing an overdraft on the Fund Account, 
which shall be accommodated and facilitated auto-
matically, on an indefinite basis, and without the im-
position of any interest charge or other form of 
maintenance or overdraft fees by the Federal Re-
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serve Bank of New York and the Board of Gov-
ernors of the Federal Reserve System. 
(3) OVERDRAFT TREATMENT.—The Fund Ac-
count shall be exempt from any overdraft prohibi-
tions that currently apply to other accounts adminis-
tered on behalf of the Department of the Treasury 
Department by the Federal Reserve System or a 
Federal reserve bank, and any overdraft liability in-
curred by the Department of the Treasury shall not 
be included in calculations of public debt subject to 
limit under section 3101 of title 31, United States 
Code. 
(4) TREATMENT OF LOSSES.—The Federal Re-
serve Bank of New York shall record any losses in-
curred as a result of spending undertaken on behalf 
of the Secretary from the Fund Account as a de-
ferred asset (as described in section 11.96 of the Fi-
nancial Accounting Manual for Federal Reserve 
Banks, as in effect on the date of the enactment of 
this Act) and shall be excluded from calculations of 
the net operating position or consolidated balance 
sheet of the Federal Reserve Bank of New York or 
the Federal Reserve System, so as to not reduce or 
impact the calculation of total income or revenue 
generated by the Federal Reserve System, or other-
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wise reduce the total amount of net operating profits 
to be made available for remittance to the Treasury 
on an ongoing basis. 
Æ 
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