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NAFCU-attended Fed roundtable tackles CBDC
The Federal Reserve Friday held a roundtable discussion to review the Fed's public discussion paper examining the pros and cons of and potential for a central bank digital currency (CBDC). The group discussed how CBDC might impact the safety and effectiveness of the domestic payments system and the risks, and policy tradeoffs that might exist under different designs.
During the discussion, the group talked about alternative mechanisms and initiatives that could be used to advanced payments innovation, as well as how a CBDC might affect financial stability and the competitive viability of credit unions.
NAFCU outlined the Fed’s discussion paper and solicited member feedback through a Regulatory Alert sent to credit unions in January; comments are due to the Fed May 20.
The association has also released a Digital Assets issue brief outlining the regulatory environment surrounding the early stages of digital assets’ integration into the broader economy; the document will be updated regularly as this topic evolves.
The association will continue to engage the Fed, Treasury Department, NCUA, Congress and other federal financial regulators to call for credit unions to be granted the ability to engage with digital assets on equal footing with banks.