I 
118TH CONGRESS 
1ST SESSION H. R. 5410 
To direct the Secretary of the Treasury to develop and pilot digital dollar 
technologies that replicate the privacy-respecting features of physical cash. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 12, 2023 
Mr. LYNCH (for himself, Ms. PRESSLEY, Ms. TLAIB, and Mr. GARCI´A of Illi-
nois) introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To direct the Secretary of the Treasury to develop and 
pilot digital dollar technologies that replicate the privacy- 
respecting features of physical cash. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Electronic Currency 
And Secure Hardware Act’’ or the ‘‘ECASH Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) ECIP.—The term ‘‘ECIP’’ means the Elec-
tronic Currency Innovation Program established 
under section 4. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
SEC. 3. ELECTRONIC DOLLAR. 
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall promote and facilitate the development and de-
ployment of an electronic version of the United States dol-
lar for use by the general public that replicates and pre-
serves the privacy, anonymity-respecting, and minimal 
transactional data-generating properties of physical cur-
rency instruments such as coins and notes to the greatest 
extent technically and practically possible. 
(b) ELECTRONIC
DOLLAR
REQUIREMENTS.—The 
electronic dollar described under subsection (a) shall be— 
(1) known as ‘‘e-cash’’; 
(2) payable to bearer; 
(3) legal tender, as described in section 5103 of 
title 31, United States Code; 
(4) an obligation of the United States, as de-
scribed in section 8 of title 18, United States Code; 
(5) created and issued into circulation by the 
Department of the Treasury, in such quantities, de-
nominations, and technical forms as the Secretary, 
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in the Secretary’s discretion, determines to be appro-
priate; 
(6) distributed directly to, and capable of being 
owned, held, and used directly by, the general public; 
(7) capable of instantaneous, final, direct, peer- 
to-peer, offline transactions using secured hardware 
devices that do not involve or require subsequent or 
final settlement on or via a common or distributed 
ledger, or any other additional approval or validation 
by the United States Government or any other third- 
party payments processing intermediary; 
(8) inter-operable with all existing financial in-
stitution and payment provider systems and gen-
erally accepted payments standards and network 
protocols, as well as other public payments pro-
grams, including the U.S. Debit Card and Digital 
Pay Program and the EagleCash card program of 
the Department of the Treasury and any other dig-
ital dollar or public banking products; 
(9) classified and regulated in a manner similar 
to physical currency for the purposes of anti-money 
laundering, know-your-customer, counter-terrorism, 
and transaction reporting laws, and thus not subject 
to third-party exemptions to a reasonable expecta-
tion of privacy; 
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(10) designed, issued, and administered to be 
consistent with— 
(A) the statutory objectives articulated in 
subsection (c), as well as any rules, standards, 
and criteria enacted to further those objectives; 
(B) the consumer protections articulated in 
subsection (d), as well as any rules, standards, 
and criteria enacted to further those protec-
tions; and 
(C) any and all other technical and policy 
criteria established by this Act or by the Sec-
retary or Director under the authority granted 
to them under this Act; 
(11) distinguishable from other forms of elec-
tronic currency issued by or on behalf of the United 
States Government, including any such forms that— 
(A) are issued by a department, branch, 
agency, or instrumentality of the United States 
Government other than the Department of the 
Treasury, including such forms of ‘‘central 
bank digital currency’’ as may be issued by the 
Board of Governors of the Federal Reserve Sys-
tem or its designated agents; 
(B) are legally classified as an account bal-
ance or any other kind of financial instrument 
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not payable to bearer or that otherwise require 
identification and account or device registration 
to hold, access, or use; 
(C) are not distributed directly to, or oth-
erwise capable of being owned, held, or used di-
rectly by, the general public; or 
(D) fail to replicate and preserve the pri-
vacy, anonymity-respecting, and minimal trans-
actional data-generating properties of physical 
currency instruments such as coins and paper 
notes to the greatest extent technically and 
practically possible; and 
(12) not included in calculations of public debt 
subject to limit under section 3101 of title 31, 
United States Code. 
(c) STATUTORY OBJECTIVES.—The Secretary shall 
promulgate and enforce rules, standards, and criteria per-
taining to the development and implementation of e-cash 
instruments, devices, technologies, platforms, and sup-
porting and enabling infrastructure, as well as the 
issuance, dissemination, circulation, storage, and use of e- 
cash balances, including use in transactions, in such a 
manner and to such an extent as the Secretary determines 
to be necessary or appropriate to achieve the objectives 
of this Act, subject to the following conditions: 
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(1) OWNERSHIP.—The Secretary shall require 
that any and all e-cash instruments are capable of 
being owned, held, and used directly by the general 
public via widely available hardware devices, without 
the necessary involvement of third-party custodial or 
payment processing intermediaries. 
(2) PRIVACY.—The Secretary shall require that 
any hardware device authorized to hold or otherwise 
facilitate transactions involving e-cash shall be se-
cured locally via cryptographic encryption and other 
appropriate technologies, and shall not contain or be 
subject to any surveillance, personal identification or 
transactional data-gathering, or censorship-enabling 
backdoor features. 
(3) 
UNIVERSALITY.—The 
Secretary 
shall 
prioritize wherever possible technologies, practices, 
and programs that promote universal access and 
usability, particularly for— 
(A) individuals with disabilities, including 
visual impairment; 
(B) low-income individuals; and 
(C) communities with limited access to the 
internet or telecommunications networks. 
(4) INCLUSION.—The Secretary shall take into 
consideration the unique needs and circumstances of 
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marginalized communities and populations that have 
historically been excluded from or otherwise pre-
vented from taking full advantage of traditional and 
current financial institutions and payment services. 
(5) TRANSPARENCY.—The Secretary shall seek 
out and prioritize wherever practically feasible the 
use of hardware and software technologies issued 
under open-source licenses, and shall further require 
that all publicly funded research and technology be 
released under a suitable open-source license and 
made available for study and review by the scientific 
community and the general public, except to the ex-
tent that doing so would undermine or impair the 
security and integrity of e-cash devices or instru-
ments. 
(d) CONSUMER PROTECTIONS.— 
(1) FEES.—The Government may charge rea-
sonable prices when selling e-cash-compatible hard-
ware (henceforth ‘‘e-cash devices’’) directly to the 
public, provided such prices are proportionate to, 
and not unduly in excess of, actual production and 
administration costs, but may in no instance impose 
fees or other charges for holding, receiving, sending, 
or otherwise transacting with e-cash balances using 
such devices. 
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(2) SOLICITED
ISSUANCE
OF
E-CASH
HARD-
WARE DEVICES.—The Government or an authorized 
e-cash distributor may issue an e-cash device to a 
member of the public only in response to an oral or 
written request for such device. 
(3) SOLICITED
ISSUANCE
OF
E-CASH
BAL-
ANCES.—The Government or an authorized e-cash 
distributor may issue e-cash instruments to a user 
only in response to an oral or written request to re-
ceive funds in the form of e-cash, and any such re-
quested funds shall be capable of being— 
(A) received in the form of an increase in 
the available balance of an existing e-cash de-
vice or as a balance on a newly issued e-cash 
device; and 
(B) paid for, to the extent such instru-
ments shall be paid for, through delivery of 
physical currency or demand deposits at an 
interoperable exchange terminal. 
(4) DISCLOSURES BY E-CASH DISTRIBUTORS.— 
(A) IN
GENERAL.—Disclosures by the 
United States Government and any third-party 
authorized to distribute e-cash devices or bal-
ances regarding usage, fees, interoperability, se-
curity, privacy, data collection, error resolution, 
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and any other terms considered relevant by the 
Bureau of Consumer Financial Protection shall 
be clear and readily understandable, in writing, 
and in a form the e-cash instrument bearer can 
reasonably maintain. 
(B) FORM OF DISCLOSURES.—Disclosures 
described under subparagraph (A) may be pro-
vided to the consumer in offline electronic form, 
subject to compliance with the consumer-con-
sent and other applicable provisions of the Elec-
tronic Signatures in Global and National Com-
merce Act (15 U.S.C. 7001 et seq.). 
(5) LIABILITY OF ISSUERS FOR UNAUTHORIZED 
TRANSFERS.—Neither the issuing entity nor any 
other Government agencies or approved e-cash dis-
tributors shall be held liable for unauthorized trans-
fer of e-cash balances, so long as the appropriate 
disclosures and protections described in this Act are 
made. 
(6) FEES BY MERCHANTS.—It shall be unlawful 
for the United States Government, authorized e-cash 
distributors, or any other person to impose a service 
fee or an interchange fee, or other processing fee or 
surcharge, for the use of e-cash in payments or pur-
chases. 
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(7) BANKRUPTCY.—E-cash instruments and 
balances shall be considered exempt property equiva-
lent to physical currency for the purposes of Chapter 
7 Bankruptcy proceedings. 
(8) TRANSACTIONAL
REPORTING.—Under no 
circumstance, regardless of the particular technology 
involved, shall any transaction data generated by e- 
cash payments be collected, monitored, or retained 
by the United States Government, an authorized e- 
cash distributor, or any other counterparty except 
via the exemptions provided by this Act. 
(9) PREEMPTION
OF
INCONSISTENT
STATE 
LAWS.—State consumer laws are pre-empted unless 
the Director of the Bureau of Consumer Financial 
Protection determines, upon the Director’s own mo-
tion or upon the request of a State government, but 
ultimately in the Director’s sole discretion, that a 
State’s consumer protection laws are not pre- 
empted. 
(e) REQUIREMENT TO ACCEPT E-CASH.— 
(1) FEDERAL
GOVERNMENT.—The Federal 
Government shall— 
(A) accept e-cash for any payment to the 
Federal Government, including payments for 
taxes, fines, and fees; and 
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(B) upon request, provide any Federal 
Government benefit in the form of e-cash. 
(2) PRODUCTS
AND
SERVICES.—Any person 
selling products or services that accepts physical cur-
rency as a form of payment shall also accept e-cash 
as a form of payment to the extent it is practically 
feasible and reasonable to do so. 
(f) ILLICIT FLOWS.— 
(1) PRESUMPTION
OF
LEGITIMATE
USE.— 
Under no condition shall the acquisition, possession, 
or use of e-cash devices, instruments, and balances 
under the parameters established by this Act be 
treated as prima facie or intrinsic evidence of crimi-
nal activity or intent, nor be established as a predi-
cate offense or factor in crimes not specified in or 
under the authority established by this Act. 
(2) INCLUDING
UNDER
THE
BANK
SECRECY 
ACT.— 
(A) IN GENERAL.—Section 5312(a)(3) of 
title 31, United States Code, is amended— 
(i) in subparagraph (C), by striking 
‘‘and’’ at the end; 
(ii) by redesignating subparagraph 
(D) as subparagraph (E); 
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(iii) by inserting after subparagraph 
(C) the following: 
‘‘(D) e-cash, as defined under section 3 of 
the ECASH Act; and’’; and 
(iv) in subparagraph (E), as so redes-
ignated, by striking ‘‘subparagraph (A), 
(B), or (C)’’ and inserting ‘‘subparagraph 
(A), (B), (C), or (D)’’. 
(B) AMENDMENTS
TO
DOLLAR
THRESH-
OLDS.—At any time, the Director of ECIP may 
increase the value thresholds applicable to e- 
cash for any reporting requirement under sub-
chapter II of chapter 53 of title 31, United 
States Code, but may at no time decrease such 
value thresholds. 
(g) SYSTEMIC LIQUIDITY.—The Board of Governors 
of the Federal Reserve System shall take appropriate 
measures to ensure that the implementation and adoption 
of e-cash does not disrupt or substantially impact the gen-
eral availability or cost of liquidity for depository institu-
tions, credit unions, or community development financial 
institutions, or their capacity to extend credit and other 
financial services to underserved populations, as described 
under the Community Reinvestment Act of 1977, and any 
other applicable Federal and State laws, however such 
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measures may in no way impair, restrict, or otherwise 
limit the ability of the public to access, hold, and use e- 
cash. 
SEC. 4. ELECTRONIC CURRENCY INNOVATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish the 
Electronic Currency Innovation Program to direct, over-
see, coordinate, and harmonize the development, imple-
mentation, maintenance, and regulation of e-cash instru-
ments, devices, technologies, platforms, and supporting 
and enabling infrastructure in accordance with the tech-
nical and policy criteria established by this Act. 
(b) DIRECTOR.— 
(1) APPOINTMENT.— 
(A) IN GENERAL.—The head of the ECIP 
shall be the Director, who shall be appointed by 
the President, by and with the advice and con-
sent of the Senate. 
(B) TERM.—The term of the Director is 5 
years. 
(C) REMOVAL.—The President may re-
move the Director from office. On removal, the 
President shall send a message to the Senate 
giving the reasons for removal. 
(D) INTERIM DIRECTOR.—When a Direc-
tor has not yet been confirmed or appointed, 
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the Secretary may, subject to the consent of the 
President, appoint an Interim Director, who 
shall enjoy the full powers and privileges of the 
Director as established under this Act until 
such time as a permanent Director is confirmed 
and appointed. In the event neither a Director 
or Interim Director is appointed, all responsibil-
ities and duties assigned to the Director under 
this Act shall be assumed by the Secretary. 
(2) DUTIES
AND
POWERS.—The duties and 
powers of the Director are as follows: 
(A) Promote innovation in, and ensure the 
successful 
implementation 
and 
widespread 
adoption of, e-cash instruments, devices, tech-
nologies, platforms, and supporting and ena-
bling infrastructure in accordance with this Act, 
by— 
(i) directing, conducting, sponsoring, 
and publishing research; 
(ii) generating, collecting, analyzing, 
and publishing data; 
(iii) acquiring, developing, dissemi-
nating, and sharing open-access tech-
nologies and technical knowledge; 
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(iv) developing and administering e- 
cash pilot programs, both individually and 
in partnership with other actors and enti-
ties that the Secretary determines appro-
priate; 
(v) promulgating, and enforcing rules, 
objectives, standards, and criteria per-
taining to the development and implemen-
tation of e-cash instruments, devices, tech-
nologies, platforms, and supporting and 
enabling infrastructure, as well as the 
issuance, dissemination, circulation, stor-
age, and use of e-cash, including its use in 
transactions; 
(vi) coordinating with other actors, in-
cluding other departments, branches, agen-
cies, and instrumentalities of the United 
States Government, as well as State, local, 
and foreign governments and international 
regulatory bodies, in furtherance of the 
general goals of this Act; and 
(vii) developing and disseminating 
public educational materials and con-
ducting public educational campaigns to 
foster awareness and understanding of e- 
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cash and its economic and social signifi-
cance in the broader monetary system. 
(B) Such other duties and powers as the 
Secretary may delegate or prescribe. 
(c) STAFF, EQUIPMENT, AND FACILITIES.—The Di-
rector shall be authorized to hire staff, purchase equip-
ment, and rent or acquire facilities as the Director deter-
mines to be appropriate to achieve the goals and objectives 
established under this Act, subject to the approval of the 
Secretary. 
(d) PILOT PROGRAMS.— 
(1) ESTABLISHMENT.— 
(A) IN GENERAL.—Not later than 90 days 
after the enactment of this Act, the Director 
shall initiate a two-phase e-cash pilot program 
in anticipation of general deployment of e-cash 
to the public not later than forty-eight months 
after the date of enactment of this Act. 
(B) PHASE 1.—Phase 1 of the pilot pro-
gram shall consist of not less than three dis-
tinct pilots (in this section referred to as 
‘‘Proof-of-Concept Pilots’’), each of which shall 
launch no later than 180 days after the date of 
enactment of this Act, and run for no longer 
than 360 days thereafter. 
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