The Independent Community Bankers of America (ICBA) has commended the House of Representatives for passing legislation that would restrict the federal government's ability to introduce a U.S. central bank digital currency (CBDC).
"ICBA and the nation’s community banks commend House members for passing legislation to bar the Federal Reserve from issuing a U.S. CBDC to consumers, which would disintermediate community banks, reduce credit availability, and undermine consumer privacy," said ICBA President and CEO Rebeca Romero Rainey. "The CBDC Anti-Surveillance State Act — which was a key community banker grassroots advocacy issue during the recent ICBA Capital Summit — would avoid the unnecessary risks to consumers and small businesses that a U.S. CBDC would pose, and we encourage Congress to continue advancing this important legislation."
The CBDC Anti-Surveillance State Act (H.R. 5403), introduced by House Majority Whip Tom Emmer (R-Minn.), seeks to prohibit Federal Reserve Banks from offering products or services directly to individuals, maintaining individual accounts, or issuing a CBDC to individuals. The legislation also aims to prevent the Federal Reserve and Treasury Department from issuing a CBDC without congressional authorization.
ICBA has consistently voiced opposition to the creation of a U.S. CBDC. Recently, it requested federal records from U.S. agencies on whether legislative changes are necessary for issuing such a currency. In various communications with Congress, the Federal Reserve, and the White House, as well as in an op-ed in American Banker, ICBA has argued that a U.S. CBDC could harm community banks' access to deposits and their ability to lend funds supporting economic growth while threatening the overall health of the U.S. financial system.
ICBA will continue its efforts against the creation of a U.S. CBDC and advocate for the final passage of the CBDC Anti-Surveillance State Act.
About ICBA
The Independent Community Bankers of America® aims to create and promote an environment where community banks can flourish through effective advocacy, education, and innovation. America's community banks leverage their relationship-based business model and innovative offerings to channel deposits into local neighborhoods, creating jobs, fostering economic prosperity, and supporting their customers' financial goals.
For more information, visit ICBA’s website at icba.org.
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