CONTACT: Brigid Richelieu
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Trade Group Calls for Government and Private Sector to Work Together to Ensure the United States Has a World-Leading Payments System
Washington, D.C. – Regulators and the private sector should develop public-private partnerships to conduct research and development about new technologies and infrastructures, including a potential central bank digital currency (CBDC), the Financial Services Forum said Friday.
Responding to a discussion paper from the Federal Reserve Board (FRB), the Forum urged the FRB to continue to examine the potential risks of a CBDC, as well as alternative ways to achieve the goals associated with a CBDC and an enhanced payments system. The Forum further encouraged the FRB to consider the appropriate legal and regulatory development that is necessary to support payment system innovation before adopting any CBDC.
“The Forum member institutions are committed to helping to ensure that the United States has a world-leading payments system that allows individuals, households, and businesses to execute financial transactions quickly, securely, and cost-effectively,” Forum President and CEO Kevin Fromer said. “We welcome the FRB’s willingness to engage with a wide range of stakeholders and encourage the FRB to continue to take a deliberate and thoughtful approach to examining this novel and complex change.”
The Forum’s letter offered a number of key observations and recommendations regarding the discussion paper and provided responses to specific questions posed by the FRB. The Forum emphasized the importance of evaluating the risks associated with a CBDC, as well as possible mitigants, before determining whether a U.S. CBDC should be a part of the enhanced payments landscape. This type of process would help ensure any such determination is appropriate and would also help inform implementation of any payments system innovations, including a CBDC, the Forum said.
The Forum’s full comments can be found here.
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The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
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