Array

Credit unions warn about the cost of developing a CBDC

Must read

Op-Ed: How the crypto industry is responding to the FTX collapse

Op-Ed: How the crypto industry is responding to the FTX collapse Shane Neagle · 3 seconds ago · 7 min...

Energy is the master resource but it could be Bitcoin that reigns supreme

Energy is the master resource but it could be Bitcoin that reigns supreme Andjela Radmilac · 2 hours ago · ...

Op-Ed: FTX killed crypto, long live Bitcoin

Op-Ed: FTX killed crypto, long live Bitcoin Samuel Wan · 5 hours ago · 3 min read ...

Bitcoin miners wipe out entire 2022 balances in capitulation

Bitcoin miners wipe out entire 2022 balances in capitulation Richard Adrian · 8 hours ago · 2 min read ...

A lobby group suggests supporting the credit union engagement instead, applicating consumer protection rights to digital assets holders.

306 Total views

22 Total shares

Credit unions warn about the cost of developing a CBDC

A United States-based lobbying group has raised a voice against developing a central bank digital currency (CBDC) in the United States. The National Association of Federally-Insured Credit Unions (NAFCU) believes the project’s cost outweighs the “hypothesized benefits.”

In a public letter to the U.S. Commerce Department, dated Tuesday, Andrew Morris, the senior counsel for research and policy at NAFCU, claimed that the costs would outweigh the benefits and that there are superior alternatives for accomplishing the same objectives. The letter came in response to the Department’s request for comment (RFC) on digital assets.

While the full text of the letter is currently unavailable, according to the NAFCU release, it drew attention to private and public sector payments initiatives to illustrate the availability of less disruptive alternatives for achieving payments improvement and highlighted the role credit unions already play in terms of reaching underserved populations.

It is hardly surprising that the main alternative to CBDC in the lobby group’s view is to support credit union engagement.

The letter also offers several suggestions that should help the Commerce Department to raise the global competitiveness of the U.S, such as “support for responsible innovation” within the credit union industry and the application of consumer protection laws to entities facilitating consumer engagement with digital assets.

Related: CBDC may threaten stablecoins, not Bitcoin: Ark36 exec

NAFCU sent the very same response to the Federal Reserve in May, stating that the administration of a CBDC “will distract from the Federal Reserve’s dual mandate of achieving both stable prices and maximum sustainable employment.”

A majority of experts who’ve participated in the United States Federal Reserve conference on the “International Roles of the U.S. dollar” believe a U.S. dollar CBDC would not drastically change the global currency ecosystem.

More articles

Latest article

Op-Ed: How the crypto industry is responding to the FTX collapse

Op-Ed: How the crypto industry is responding to the FTX collapse Shane Neagle · 3 seconds ago · 7 min...

Energy is the master resource but it could be Bitcoin that reigns supreme

Energy is the master resource but it could be Bitcoin that reigns supreme Andjela Radmilac · 2 hours ago · ...

Op-Ed: FTX killed crypto, long live Bitcoin

Op-Ed: FTX killed crypto, long live Bitcoin Samuel Wan · 5 hours ago · 3 min read ...

Bitcoin miners wipe out entire 2022 balances in capitulation

Bitcoin miners wipe out entire 2022 balances in capitulation Richard Adrian · 8 hours ago · 2 min read ...

The Metaverse has to be open and collaborative according to Virtua co-founder – CryptoSateIRL #23

Virtua, a promising metaverse project chaired by industry veteran & BAFTA nominee Gary Bracey, is convinced web3 will revolutionize online gaming ...