# Plain Language Summary: No CBDC Act

This bill prevents the Federal Reserve and the U.S. government from creating a central bank digital currency, commonly called a CBDC. A CBDC would be a digital version of the dollar that the Federal Reserve could issue directly to individuals, similar to how you might use a digital payment app, but run by the government instead of a private company.

The bill essentially says the Federal Reserve cannot develop, issue, or distribute a digital currency to regular people or businesses. It also prohibits the government from requiring anyone to use such a currency or from using a CBDC to replace physical cash. This means if this bill becomes law, you won't have to worry about the government forcing you to switch from paper money or coins to a government-controlled digital currency. The bill protects your ability to continue using traditional cash and existing private payment methods like credit cards, debit cards, and digital payment apps.

The main concern supporters of this bill have is about government control and privacy. They worry that a government-issued digital currency could allow the Federal Reserve to track every transaction you make or potentially freeze your access to money. By blocking CBDCs, the bill aims to preserve financial privacy and prevent what some see as excessive government surveillance of personal finances. However, this doesn't affect private companies' digital payment systems—only prevents a direct government-issued digital currency from being created.

No CBDC Act

Lee, Mike

No Central Bank Digital Currency Act or the No CBDC Act This bill generally prohibits the Federal Reserve Board, Federal Reserve Banks, the Department of the Treasury, and other agencies from issuing or using a central bank digital currency.