the Currency, the Federal Deposit Insurance Corporation, 
the Department of the Treasury, the Securities and Ex-
change Commission, and the Commodity Futures Trading 
Commission, shall conduct a study on the impact of the 
introduction of a CBDC on— 
(1) consumers and small businesses, including 
with respect to financial inclusion, accessibility, safe-
ty, privacy, convenience, speed, and price consider-
ations; 
(2) the conduct of monetary policy and inter-
action with existing monetary policy tools; 
(3) the effectiveness of United States economic 
sanctions programs and the status of the United 
States dollar as a reserve currency; 
(4) the United States financial system and 
banking sector, including liquidity, lending, and fi-
nancial stability mechanisms; 
(5) the United States payments and cross-bor-
der payments ecosystems, including the FedNow 
Service; 
(6) compliance with existing AML/BSA, illicit 
financing, and related laws and regulations, and 
electronic recordkeeping requirements; 
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(7) data privacy and security issues related to 
CBDC, including transaction record anonymity and 
digital identity authentication; 
(8) the international technical infrastructure 
and implementation of such a system, including with 
respect to interoperability, cybersecurity, resilience, 
offline transaction capability, and programmability; 
(9) the likely participants in a CBDC system, 
their functions, and the benefits and risks of having 
third parties perform value-added functions, such as 
fraud insurance and blocking suspicious trans-
actions; and 
(10) the operational functioning of a CBDC 
system, including— 
(A) how transactions would be initiated, 
validated, and processed; 
(B) how users would interact with the sys-
tem; and 
(C) the role of the private sector and pub-
lic-private partnerships. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Board of Governors shall 
submit to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
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Housing, and Urban Affairs of the Senate a report that 
provides the following: 
(1) The results of the study conducted under 
subsection (a). 
(2) Based on such study, one or more rec-
ommended feasible models for the development of a 
CBDC that includes a description of the salient de-
sign, policy, and technical considerations therein, in-
cluding a model which takes into account the fol-
lowing: 
(A) Financial access and inclusion for 
unbanked and underbanked consumers, with 
the ability to make real-time digital payments 
and transactions through digital wallets. 
(B) Strong cybersecurity controls capable 
of mitigating cyber-related risks including 
ransomware, malware, and fraud and theft. 
(C) A strong digital identity verification 
system to prevent identity fraud and allow for 
compliance with applicable requirements relat-
ing to anti-money laundering, illicit financing, 
and security and authentication standards. 
(D) Mechanisms to account for instances 
of mistake, unauthorized transfers, or fraud 
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which may require transaction modification or 
reversibility. 
(E) The capacity for third-party features 
such as custody and recoverability, account and 
transaction monitoring, and other services. 
(F) Third-party transaction anonymity 
which protects user privacy and only allows for 
traceability when otherwise required by law, in-
cluding through a court order. 
(G) Interoperability with other U.S. and 
international payments systems. 
(3) A timeline for CBDC development and de-
ployment of the recommended models in paragraph 
(2), that includes relevant interim milestones. 
(4) A description of any legal authorities, if 
any, the Board of Governors would require to imple-
ment the CBDC model set forth in paragraph (2), 
including any authority with respect to— 
(A) the issuance of digital currency; 
(B) licensing and supervision of digital 
currency transmission services and nonbank 
technology providers to the extent they provide 
CBDC-related services; and 
(C) international agreements which would 
be necessary to allow foreign nationals to utilize 
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CBDC’s while preserving appropriate privacy 
and legal traceability. 
(c) CBDC DEFINED.—In this Act, the term 
‘‘CBDC’’ means central bank digital currency. 
Æ 
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