Nussle backs bill to bar Fed from issuing CBDC prior to House vote

America’s Credit Unions President/CEO Jim Nussle wrote in strong support of the CBDC Anti-Surveillance State Act (H.R. 5403) in advance of House floor consideration of the bill this week. The bill prohibits the Federal Reserve from issuing a central bank digital currency (CBDC).

“While a central bank digital currency (CBDC) might sound like it would be of massive benefit to consumers, it brings with it privacy concerns and many of the design features necessary to achieve certain benefits come with serious tradeoffs that could negatively impact credit unions and pose broader financial stability risks,” Nussle wrote to House members. “In some cases, those tradeoffs are difficult to anticipate because underlying regulatory policies—such as what balance to strike in terms of protecting consumer privacy, or how to guard against retail deposit substitution—are not yet developed.”

Nussle added that the “massive expansion” of the Fed mission that would come alongside offering a CBDC directly to consumers would threaten to erode the financial system, and “administration of a CBDC will distract from the Federal Reserve’s dual mandate of achieving both stable prices and maximum sustainable employment.”


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