The Clearing House Association L.L.C. (TCH), together with the American Bankers Association (ABA), Bank Policy Institute (BPI), Consumer Bankers Association (CBA), Credit Union National Association (CUNA), National Association of Federally-Insured Credit Unions (NAFCU), and National Bankers Association (NBA) (together, the joint trades), sent a letter to Chairwoman Maxine Waters and Ranking Member Patrick McHenry of the U.S. House Financial Services Committee to express their jointly-held views on the substantial risks posed by a potential U.S. CBDC. The joint trades, which represent every type of bank in the U.S., including small, minority, and community depository institutions, and credit unions, detail significant risks posed by a CBDC, and observe that the purported benefits of a CBDC are uncertain or unlikely to be realized. The joint trades note, in their letter, the significant progress that banks have made at bringing unbanked families into the financial system, and the reasons why the U.S. dollar is the world’s reserve currency – none of which would be bolstered or improved by a CBDC. The joint trades also note that were the U.S. to move forward with a CBDC, legislation would be required to authorize the Federal Reserve and the Treasury Department to change the nature of the nation’s currency. Ultimately, the joint trades conclude that there is no compelling case for the introduction of a CBDC in the U.S. today given the substantial risks and limited benefits a CBDC poses.

To read the full comment letter please click here.