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12 U.S.C. § 411 : US Code - Section 411: Issuance to reserve banks; nature of obligation; redemption

Federal reserve notes, to be issued at the discretion of the
Board of Governors of the Federal Reserve System for the purpose of
making advances to Federal reserve banks through the Federal
reserve agents as hereinafter set forth and for no other purpose,
are authorized. The said notes shall be obligations of the United
States and shall be receivable by all national and member banks and
Federal reserve banks and for all taxes, customs, and other public
dues. They shall be redeemed in lawful money on demand at the
Treasury Department of the United States, in the city of
Washington, District of Columbia, or at any Federal Reserve bank.

Can anyone explain this?

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Prior to 1933 FRNs could be

Prior to 1933 FRNs could be exchanged for gold. Executive order 6102 ended that.

Prior to 1968 they could be exchanged for silver.

Prior to 1994 they could be exchanged for United States Notes issued by the treasury instead of the fed, trading one fiat for another.

In 1996 the treasury destroyed their remaining US notes. So Fed notes are now backed by nothing.