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.” 

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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