A Treasury-led interagency working group charged with advancing work on a possible U.S. central bank digital currency has narrowed its objectives into three key policy areas, Treasury Under Secretary for Domestic Finance Nellie Liang said.
Key Objectives: Speaking in Washington, Liang said the CBDC Working Group’s objectives focus on:
- Global financial leadership, including the global role of the U.S. dollar.
- National security and the U.S. use of sanctions and other financial measures against threats.
- Protecting privacy, minimizing the risk of illicit financial transactions, and promoting financial inclusion.
More: Liang noted that the FedNow Service scheduled to launch this summer is an alternative option for upgrading the legacy capabilities of central bank money. She also reiterated that the Federal Reserve has emphasized that it would only issue a U.S. CBDC with the support of the executive branch and Congress.
ICBA Position: ICBA opposes the creation of a U.S. CBDC, arguing that it would disintermediate community banks and pose privacy risks without improving on superior payment alternatives, such as FedNow. ICBA in September released polling conducted by Morning Consult indicating consumers support a regulatory framework for digital assets and are skeptical of the creation of a U.S. CBDC.
Next: Friday is the deadline to respond to a White House Office of Science and Technology Policy request for information on a National Digital Assets Research and Development Agenda. ICBA will submit a response by the deadline.