Digital age modernization cannot be at credit unions’ expense
Published by: Sean Brown
May 19, 2022 | Regulatory
Ohio credit unions have always sought to be at the forefront of financial technology, whether moving from cash to online banking or check processing to ACH transfers. A recent Federal Reserve request for comment regarding a central bank digital currency (CBDC) is a unique opportunity to highlight the Movement’s ongoing desire to grow, enhance, and implement digital currency platforms to meet members’ needs. As a digital liability of a central bank, or the Federal Reserve, the CBDC would be a widely available cryptocurrency backed by the full faith of the federal government.
To best empower your credit union to serve communities with digital currencies into the future, the League encouraged the Federal Reserve to empower Ohio credit unions as cryptocurrency custodians rather than emboldening the federal government to bypass safe and sound financial institutions as an essential financial services partner. Additionally, the League applauded the potential payment efficiencies, consumer access, and BSA/AML modernization a CBDC could bring to credit unions while cautioning against unintended consequences to private financial institutions, consumer trust, and underbanked communities. While credit unions will continue to serve their communities regardless of the CBDC outcome, access to the digital dollar will be an important element of future success.
Read the League comment letter and connect with the League’s Director of Regulatory Affairs, Sean Brown, for any questions or concerns regarding central bank digital currencies.
Contact Sean Brown for questions or assistance.