The Independent Community Bankers of America has reiterated its opposition to a U.S. Central Bank Digital Currency (CBDC).
The trade association said in a comment letter to the Commerce Department that it wants the government to step up oversight of digital assets, including cryptocurrency.
The ICBA made several arguments in the letter:
- Digital assets present numerous significant threats, including financial crimes and risks for financial stability.
- Stablecoins exist in an unregulated space with several nonbanks performing critical intermediary functions. Community bankers believe it is essential to bring stablecoins under federal banking regulation to address these risks and explore the potential use of stablecoins for responsible innovation within the payments sector.
- Regulators should collaborate on a comprehensive regulatory framework for digital assets. Responsible innovation requires policymakers to establish clear regulatory guidelines.
- Community banks support the development of FedNow, as well as efforts to bring unbanked citizens within the banking system.
- Community bankers are opposed to a CBDC. “The risks far outweigh the uncertain and unproven benefits cited by CBDC advocates,” the association said. “A CBDC threatens to disintermediate community banks, thus raising the risk of serious economic consequences.”
The Commerce Department is seeking comments as part of the Biden Administration’s executive order tied to digital assets.