,i #aag? ,,congress #a/ ,session ,h4 ,r4 #bbaa ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,m>* #bf1 #bjba,mr4 ,fo/] 7= himself & ,mr4 ,hill7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to direct ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em to conduct a /udy on c5tral bank digital curr5cies1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,c5tral ,bank ,digital ,curr5cy ,/udy ,act ( #bjba4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,a ,janu>y #bjba survey by ! ,bank = ,int]national ,settlem5ts f\nd t #hf p]c5t ( c5tral banks1 repres5t+ c\ntries ) close to #gb p]c5t ( ! _w's population & #ia p]c5t ( global economic output1 are curr5tly or w soon be engag$ 9 "w relat+ to ,,cbdc1 ) almo/ ?ree-qu>t]s ( su* c5tral banks hav+ mov$ beyond ! rese>* ( ,,cbdc to exp]im5tation1 pro( ( concept1 or te/+ activities4 7#b7 ,s9ce ,decemb] #bjaf1 ! ,european ,c5tral ,bank & ! ,bank ( ,japan h conduct$ a jo9t rese>* project nam$ ,project ,/ella1 :i* aims to conduct exp]im5tal "w & conceptual /udies explor+ ! opportunities ( digital l$g] te*nologies & *all5ges = ! future ( f9ancial m>ket infra/ructures1 includ+ ,c,b,d,cs4 7#c7 ,s9ce #bjad1 ! ,p's ,bank ( ,*9a has conduct$ rese>* & developm5t activities = a ,,cbdc1 & 9 ,octob] #bjbj1 laun*$ a digital yuan pilot program 9 ,%5zh54 7#d7 ,9 ,augu/ #bjbj1 ! ,f$]al ,res]ve ,bank ( ,bo/on ann\nc$ a collaboration ) ! ,digital ,curr5cy ,initiative at ! ,massa*usetts ,in/itute ( ,te*nology to p]=m te*nical rese>* relat$ to a c5tral bank digital curr5cy4 7#e7 ,9 ,octob] #bjbj1 ! ,f9ancial ,/ability ,bo>d1 9 coord9ation ) ! ,,bis's ,committee on ,paym5ts & ,m>ket ,infra/ructures1 releas$ a report to provide a roadmap = enhanc+ cross-bord] paym5ts1 includ+ an exploration ( new paym5t infra/ructures pres5t$ by c5tral bank digital curr5cies4 7#f7 ,9 ,janu>y #bjbj1 ! ,bank = ,int]national ,settlem5ts ann\nc$ t ! ,bank ( ,engl&1 ! ,bank ( ,canada1 ! ,bank ( ,japan1 ! ,european ,c5tral ,bank1 ! ,sv]iges ,riksbank1 ! ,swiss ,national ,bank1 & ! ,bank ( ,int]national ,settlem5ts _h =m$ a gr\p to %>e in=mation on ! pot5tial uses ( ,,cbdc 9 ! c5tral banks' jurisdictions1 z well z in=mation on pot5tial economic1 functional1 & te*nical design *oices4 7#g7 ,accord+ to data f ! ,int]national ,monet>y ,fund1 z ( ! ?ird qu>t] ( #bjai1 ! ,unit$ ,/ates doll> %>e ( global curr5cy res]ves total$ #f1gej1jjj1jjj1jjj1 or #fa4gh p]c5t ( all allocat$ res]ves1 & ! /&+ ( ! ,unit$ ,/ates doll> z ! _w's pr$om9ant res]ve curr5cy enables ! ,unit$ ,/ates to use economic sanctions z a =eign policy tool4 7#h7 ,accord+ to a #bjah report by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ca% cont9ues to be ! mo/ frequ5tly us$ paym5t in/rum5t1 repres5t+ #cj p]c5t ( all transactions & #ee p]c5t ( transactions "u #aj1 ) #gg p]c5t ( ^? transactions made 9-p]son4 7#i7 ,! ,f$]al ,res]ve ,sy/em is responsible =1 among o!r ?+s1 conduct+ ,unit$ ,/ates monet>y policy1 promot+ ! /ability ( ! f9ancial sy/em1 sup]vis+ f9ancial in/itutions to ensure safety & s\ndness1 ensur+ ! safety & effici5cy ( paym5t sy/ems1 & issu+ & circulat+ ,f$]al ,res]ve notes4 #c4 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 ! ,bo>d ( ,gov]nors %\ld cont9ue to conduct rese>* on1 design1 & develop1 a ,,cbdc t takes into acc\nt its impact on consum]s1 bus9esses1 ! ,unit$ ,/ates f9ancial sy/em1 & ! ,unit$ ,/ates economy1 includ+ ! pot5tial impact ( a ,,cbdc on monet>y policy2 & 7#b7 ! ,unit$ ,/ates %\ld /rive to ma9ta9 its lead]%ip 9 f9ancial te*nology & ensure t ! ,u4,s4 doll> rema9s ! pr$om9ant res]ve curr5cy 9 ! _w economy4 #d4 ,/udy & report 7a7 ,/udy ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 9 consultation ) ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,dep>tm5t ( ! ,treasury1 ! ,securities & ,ex*ange ,commission1 & ! ,commodity ,futures ,trad+ ,commission1 %all conduct a /udy on ! impact ( ! introduction ( a ,,cbdc on-- 7#a7 consum]s & small bus9esses1 includ+ ) respect to f9ancial inclusion1 accessibility1 safety1 privacy1 conv5i5ce1 spe$1 & price consid]ations2 7#b7 ! conduct ( monet>y policy & int]action ) exi/+ monet>y policy tools2 7#c7 ! effectiv5ess ( ,unit$ ,/ates economic sanctions programs & ! /atus ( ! ,unit$ ,/ates doll> z a res]ve curr5cy2 7#d7 ! ,unit$ ,/ates f9ancial sy/em & bank+ sector1 includ+ liquidity1 l5d+1 & f9ancial /ability me*anisms2 7#e7 ! ,unit$ ,/ates paym5ts & cross-bord] paym5ts ecosy/ems1 includ+ ! ,fed,now ,s]vice2 7#f7 compliance ) exi/+ ,,aml_/,,bsa1 illicit f9anc+1 & relat$ laws & regulations1 & electronic recordkeep+ requirem5ts2 7#g7 data privacy & security issues relat$ to ,,cbdc1 includ+ transaction record anonymity & digital id5tity au!ntication2 7#h7 ! int]national te*nical infra/ructure & implem5tation ( su* a sy/em1 includ+ ) respect to int]op]ability1 cyb]security1 resili5ce1 (fl9e transaction capability1 & programmability2 7#i7 ! likely p>ticipants 9 a ,,cbdc sy/em1 _! functions1 & ! b5efits & risks ( hav+ ?ird p>ties p]=m value-add$ functions1 su* z fraud insurance & block+ suspici\s transactions2 & 7#aj7 ! op]ational function+ ( a ,,cbdc sy/em1 includ+-- 7,a7 h[ transactions w\ld be initiat$1 validat$1 & process$2 7,b7 h[ us]s w\ld int]act ) ! sy/em2 & 7,c7 ! role ( ! private sector & public-private p>tn]%ips4 7b7 ,report ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors %all submit to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate a report t provides ! foll[+3 7#a7 ,! results ( ! /udy conduct$ "u subsection 7a74 7#b7 ,bas$ on su* /udy1 "o or m recomm5d$ feasible models = ! developm5t ( a ,,cbdc t includes a description ( ! sali5t design1 policy1 & te*nical consid]ations !re91 includ+ a model :i* takes into acc\nt ! foll[+3 7,a7 ,f9ancial access & inclusion = unbank$ & und]bank$ consum]s1 ) ! ability to make real-"t digital paym5ts & transactions ?r\gh digital wallets4 7,b7 ,/rong cyb]security controls capable ( mitigat+ cyb]-relat$ risks includ+ ransomw>e1 malw>e1 & fraud & !ft4 7,c7 ,a /rong digital id5tity v]ification sy/em to prev5t id5tity fraud & all[ = compliance ) applicable requirem5ts relat+ to anti-money laund]+1 illicit f9anc+1 & security & au!ntication /&>ds4 7,d7 ,me*anisms to acc\nt = in/ances ( mi/ake1 unau?oriz$ transf]s1 or fraud :i* may require transaction modification or rev]sibility4 7,e7 ,! capacity = ?ird-p>ty features su* z cu/ody & recov]ability1 acc\nt & transaction monitor+1 & o!r s]vices4 7,f7 ,?ird-p>ty transaction anonymity :i* protects us] privacy & only all[s = traceability :5 o!rwise requir$ by law1 includ+ ?r\gh a c\rt ord]4 7,g7 ,int]op]ability ) o!r ,u4,s4 & int]national paym5ts sy/ems4 7#c7 ,a timel9e = ,,cbdc developm5t & deploym5t ( ! recomm5d$ models 9 p>agraph 7#b71 t includes relevant int]im mile/ones4 7#d7 ,a description ( any legal au?orities1 if any1 ! ,bo>d ( ,gov]nors w\ld require to implem5t ! ,,cbdc model set =? 9 p>agraph 7#b71 includ+ any au?ority ) respect to-- 7,a7 ! issuance ( digital curr5cy2 7,b7 lic5s+ & sup]vision ( digital curr5cy transmission s]vices & nonbank te*nology provid]s to ! ext5t !y provide ,,cbdc-relat$ s]vices2 & 7,c7 int]national agreem5ts :i* w\ld be necess>y to all[ =eign nationals to utilize ,,cbdc's :ile pres]v+ appropriate privacy & legal traceability4 7c7 ,,cbdc def9$ ,9 ?is ,act1 ! t]m ,,cbdc means c5tral bank digital curr5cy4