Credit Unions Concerned About The Cost Of Establishing A CBDC.

Instead, a lobbying organization advocates boosting credit union engagement and extending consumer protection rights to digital asset holders.

A lobbying group located in the United States has spoken out against the development of a central bank digital currency (CBDC) in the country. The project’s cost, according to the National Association of Federally Insured Credit Unions (NAFCU), surpasses the “hypothesized benefits.”

Andrew Morris, NAFCU’s senior counsel for research and policy, stated in a public letter to the US Commerce Department on Tuesday that the costs would outweigh the benefits and that there are greater alternatives for achieving the same goals. In response to the Department’s request for comment (RFC) on digital assets, the letter was sent.

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

It’s not surprising that the lobby group sees credit union engagement as the key alternative to CBDC.

The letter also makes several recommendations that should assist the Commerce Department in increasing the United States’ global competitiveness, including “support for responsible innovation” within the credit union industry and the application of consumer protection laws to entities that facilitate consumer engagement with digital assets.

In May, NAFCU wrote the Federal Reserve the same letter, noting that the administration of a CBDC “will distract from the Federal Reserve’s dual mandate of achieving both stable prices and maximum sustainable employment.”

The majority of specialists who attended the US Federal Reserve conference on the “International Roles of the US Dollar” feel that a US dollar CBDC will not significantly alter the global currency ecology.

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