ICBA reiterated to Congress its opposition to the creation of a U.S. central bank digital currency.

CBDC Opposition: In a written statement for a House Financial Services subcommittee hearing, ICBA said:

  • Congress should oppose the formation of a U.S. CBDC because it would disintermediate community bank deposits and risk a consumer privacy backlash.

  • The policy goals of a U.S. CBDC would best be addressed through alternatives, such as FedNow.

  • A wholesale CBDC—a potential form of digital currency limited to financial institutions—is similarly unnecessary given the increasing adoption of instant payment solutions.

ICBA-Supported Bills: In its statement, ICBA urged lawmakers to support pending legislation to:

  • Bar the Federal Reserve and Treasury Department from issuing a CBDC without congressional authorization.

  • Prohibit Federal Reserve Banks from offering products or services directly to individuals, maintaining individual accounts, or issuing a CBDC to individuals.

Ongoing Advocacy: ICBA has repeatedly expressed opposition to the creation of a U.S. CBDC, including in comment letters to the Fed and Treasury and in an American Banker op-ed earlier this year.