In a letter to the U.S. Commerce Department, the National Association of Federally-Insured Credit Unions (NAFCU) warned that the cost of developing a central bank digital currency (CBDC) outweighs the “hypothesized benefits.”
See related article: Hong Kong to research retail CBDC cybersecurity with Israel, BIS
Fast facts
- The organization’s July 5 letter was in line with a previous memo it sent to the U.S. Federal Reserve in May, warning that the rollout of CBDCs could disrupt financial stability.
- The Commerce Department has solicited comments on CBDCs in response to an executive order requiring the institution to establish a framework for enhancing U.S. economic competitiveness in digital assets.
- On July 5, the Bitcoin Policy Institute submitted a research paper to the Commerce Department, arguing that CBDCs would promote financial inclusivity and help the U.S. build digital infrastructure and remain competitive.
- NAFCU argues that credit unions are a better alternative to CBDCs and, with government collaboration, could engage U.S. communities and increase financial inclusion.
See related article: Taiwan completes trials of its prototype CBDC for retail use
