; or (C) issue a central bank digital currency, or any digital asset that is substantially similar under any other name or label, directly to an individual. . 3. Prohibition on Federal reserve banks indirectly issuing a central bank digital currency Section 16 of the Federal Reserve Act, as amended by section 2, is further amended by adding at the end the following new paragraph: (19) (A) A Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary. (B) Subparagraph (A) may not be construed to prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency. . 4. Prohibition on the use of central bank digital currency for monetary policy Section 16 of the Federal Reserve Act, as amended by section 3, is further amended by adding at the end the following new paragraph: (20) Prohibition on the use of central bank digital currency for monetary policy The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall not use any central bank digital currency, or any digital asset that is substantially similar under any other name or label, to implement monetary policy. . 5. Central bank digital currency (a) In general The Federal Reserve Act ( 12 U.S.C. 221 et seq. ) is amended by inserting after section 16 the following: 16A. Central bank digital currency (a) In general The Board of Governors of the Federal Reserve System may not, absent Congressional authorization, design, build, develop, establish, or issue a central bank digital currency. (b) Central bank digital currency defined In this section, the term central bank digital currency means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the Federal Reserve System. . (b) Treasury Chapter