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The American Bankers Association criticized the plan to issue central bank digital assets (CBDC) in the United States.
According to Bitcoin.com, a cryptocurrency media outlet, the American Bankers Association argued that CBDC disrupts the banking system.
In addition, a letter was sent to the US House Financial Services Committee emphasizing that โthe introduction of digital dollars is unnecessary and will bring unacceptable levels of risk and cost burden to the financial system.โ
The association believes that the US dollar has already become digital. The basis for this was that it supports various payment systems such as debit and credit cards, PayPal, and Venmo. Regarding institutions, the association noted that Fednow, a payments system focused on financial institutions, supports wholesale transactions around the clock without the need for new tools.
He went on to say that several banks are already researching the establishment of distributed ledger tools for payments, but that CBDC intervention is not necessary.
The association pointed out that the introduction of a CBDC would give it a competitive advantage against private bank deposits as the role of banks in the U.S. financial system deteriorates.
However, the association accepted that another type of CBDC that was not issued with the intention of being used by the general public may be subject to additional evaluation. For example, wholesale CBDC, which will only be used for transactions between U.S. financial institutions and the Federal Reserve, can be used in the financial system in a variety of ways.
In fact, trials related to the use of wholesale CBDC in payments between financial institutions have been conducted by the New York Federal Reserve Innovation Center at BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD It has been implemented with the participation of TD Bank, Truist, US Bank, and Wells Fargo.
