Many countries around the world, including the United States, have been studying the launch of a central bank digital currency (CBDC). However, in the case of the USA, there is an obstacle. The National Association of Federal Insurance Credit Unions (NAFCU), a country lobbying group, has issued an opinion in which it claims that the costs of issuing a CBDC outweigh its benefits.
NAFCU is against a digital dollar
According to NAFCU, the group forwarded a letter to the US Department of Commerce highlighting that there are better alternatives than a digital dollar to achieve the same goals. The note on the letter was signed by NAFCU’s Senior Research and Policy Advisor Andrew Morris. The letter, in turn, is in response to the department’s request for comment on digital assets and a US CBDC. The department asked NAFCU for an opinion on the potential impacts a CBDC would have on the US digital asset industry. In the opinion, the NAFCU appears to be against a digital dollar: “Morris reiterates the NAFCU position that the costs would outweigh the benefits – as the association has previously communicated to the Federal Reserve on the same topic – and, namely, that there are better alternatives to accomplish the same goals”, says an excerpt from the text.
US CBDC
The full text of the letter is not yet available to the public. However, the statement lists the main points of the letter. Regarding cryptocurrency regulation, for example, Morris pointed to both public and private sector payment solutions. Based on this, he sought to show that there are less disruptive alternatives than a CBDC to improve payments. Meanwhile, on the topic of financial inclusion, he highlighted the role that credit unions already play in reaching these needy populations. In addition, he recommended – as an alternative to CBDC – certain ways to support cooperatives’ involvement with these communities. The text did not elaborate on these items in the letter.
Other points of the letter
The letter also addresses other points, in relation, above all, to issues of competitiveness at a global level. In this sense, the text offers three principles that must be incorporated into any future framework. The first concerns a level playing field for credit unions, banks and other financial companies that want to get involved with digital assets. The second point involves the application of consumer protection laws to entities that give customers access to cryptocurrencies. Finally, the third point has to do with support for responsible innovation in the credit union sector. “With respect to promoting US competitiveness in the broader sector of digital asset-related activities, NAFCU encourages ITA and US Commerce to support a level playing field; consistent application of consumer financial protection law; and encouraging responsible innovation from credit unions,” concluded Morris. Also Read: Former Celsius Investment Manager Sues Company For Fraud Also Read: Binance Gets Registration In Spain, Continues Expansion Plan To Europe Also Read: MakerDAO Approves $100 Million DAI Loans to US Bank
