What This Bill Does
This bill makes it official U.S. policy to support the U.S. dollar as the world's primary reserve currency (the money that countries hold and use for international business). The Secretary of the Treasury must create a strategy to carry out this policy and report to Congress about it.
Who It Affects
The Secretary of the Treasury and the Board of Governors of the Federal Reserve System (the central banking system of the United States) are directly responsible for creating and implementing the strategy.
Key Provisions
• The Secretary of the Treasury must establish a strategy to support the dollar's position as the primary global reserve currency, including supporting deep and open financial markets, improvements to payment methods that allow dollar transactions, sound economic management, and clear rules for using financial restrictions for national security (Sec. 3(a)).
• The Secretary must submit a report within 180 days describing the strategy, key steps taken to implement it, and any legislative recommendations needed (Sec. 3(c)).
• The report must describe efforts by major foreign central banks, including China's People's Bank, to create official digital currencies and any risks these create for the United States (Sec. 3(c)).
• The report must describe the Federal Reserve's efforts to assess or develop an official U.S. digital currency (Sec. 3(c)).
• The report must evaluate China's currency policies, including how China provides government-backed assets, extends credit abroad, and develops payment systems to advance its strategic goals (Sec. 3(d)).
• The Secretary must submit updated versions of this report every year (Sec. 3(e)).
What Changes
If this becomes law, the Treasury Secretary must formally develop and implement a strategy to maintain the dollar's global importance and must report annually to Congress on this strategy and related currency developments.
Important Definitions
None defined in bill text.
I
118TH CONGRESS
1ST SESSION
H. R. 556
To support the role of the United States dollar as the primary global reserve
currency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 2023
Mr. HILL (for himself and Mr. HIMES) introduced the following bill; which
was referred to the Committee on Financial Services
A BILL
To support the role of the United States dollar as the
primary global reserve currency, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘21st Century Dollar
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Act’’.
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SEC. 2. STATEMENT OF UNITED STATES POLICY REGARD-
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ING THE DOLLAR.
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It is the policy of the United States to facilitate the
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position of the dollar as the primary global reserve cur-
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rency, including through vigorous support of—
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•HR 556 IH
(1) deep, open, and transparent financial mar-
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kets;
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(2) continuous improvements to domestic and
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international payment methods that facilitate dollar
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transactions;
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(3) sound macroeconomic governance and a
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rules-based system of international trade; and
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(4) clear and realistic objectives in the deploy-
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ment of financial restrictions arising from national
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security considerations.
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SEC. 3. REPORT ON DOLLAR STRATEGY.
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(a) IN GENERAL.—The Secretary of the Treasury (in
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this Act referred to as the ‘‘Secretary’’) shall establish a
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strategy that implements the policy described in section
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2.
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(b) CONSULTATION.—The Secretary shall, as appro-
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priate, consult with the Board of Governors of the Federal
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Reserve System when establishing the strategy pursuant
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to subsection (a).
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(c) REPORT.—Not later than 180 days after the date
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of the enactment of this section, the Secretary shall sub-
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mit to the Committee on Financial Services of the House
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of Representatives and the Committee on Banking, Hous-
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ing, and Urban Affairs of the Senate a report that de-
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scribes—
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•HR 556 IH
(1) the strategy established by the Secretary
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pursuant to subsection (a);
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(2) key measures taken by the Secretary to im-
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plement the strategy;
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(3) any legislative recommendations that would
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strengthen the ability of the United States to ad-
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vance the policy described in section 2;
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(4) a description of efforts by major foreign
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central banks, including the People’s Bank of China,
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to create an official digital currency, as well as any
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risks to the national interest of the United States
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posed by such efforts;
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(5) the status of efforts to assess or develop an
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official United States digital currency by the Board
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of Governors of the Federal Reserve System; and
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(6) any implications for the strategy established
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by the Secretary pursuant to subsection (a) arising
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from the relative state of development of an official
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digital currency by the United States and other na-
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tions, including the People’s Republic of China.
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(d) RENMINBI ASSESSMENT.—The report described
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in subsection (c) shall—
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(1) evaluate the role of the renminbi in inter-
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national payments and foreign exchange reserves;
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•HR 556 IH
(2) assess currency-related policies in China, in-
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cluding—
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(A) the provision of Chinese government-
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backed assets;
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(B) the extension of credit abroad by the
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Chinese government; and
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(C) the development of cross-border pay-
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ment systems as tools to advance strategic ob-
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jectives of the Government of the People’s Re-
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public of China; and
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(3) recommend policy options aimed at miti-
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gating medium-term and long-term risks to the na-
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tional interest of the United States that may arise
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as a result of the internationalization of the
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renminbi.
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(e) ANNUAL UPDATES.—After submitting an initial
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report in accordance with subsection (c), the Secretary
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shall submit, to the Committee on Financial Services of
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the House of Representatives and the Committee on
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Banking, Housing, and Urban Affairs of the Senate, an
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updated version of such report each year.
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•HR 556 IH
SEC. 4. SUNSET.
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Section 3 shall have no force or effect after the date
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that is 7 years after the date of the enactment of this
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Act.
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Æ
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