The head of the Independent Community Bankers of America (ICBA) issued a statement on the Federal Reserve Boardʻs recently released discussion paper on the potential for a U.S. central bank digital currency (CBDC).
“Any consideration of a U.S. CBDC must include clearly defined goals and objectives, weigh the benefits and risks, and evaluate the practical impact on consumers and the economy. Congress must be involved from the start in establishing a clear legal framework and authority for any form of CBDC. Before considering a U.S. CBDC, policymakers must also ensure it would do no harm to the financial system while preserving the vital role of community banks as engines of the U.S. economy,” ICBA President and CEO Rebeca Romero Rainey said.
Rainey said the ICBA is currently reviewing the paper and evaluating the pros and cons of developing a U.S. central bank digital currency.
“As such, the Fed’s discussion paper rightly acknowledges many important policy considerations, such as preserving private-sector intermediaries, balancing consumer privacy with transparency, ensuring transferability between customers of different intermediaries, and supporting compliance with anti-money-laundering and anti-terrorist-financing rules,” Rainey added. “With the Fed’s discussion paper committing to further pursuit of a U.S. CBDC only if research indicates the benefits outweigh the risks and the agency has broad public and cross-governmental support, ICBA looks forward to further reviewing the paper, submitting formal comments, and continuing the discussion of this important policy decision.”