Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

Fed releasing CBDC paper this summer: Powell

May 21, 2021

Federal Reserve Board Chair Jerome Powell said the Fed is planning a discussion paper for this summer on the possibility of issuing a U.S. central bank digital currency.

Focus: In a video message, Powell said the Fed will focus on whether and how a CBDC could improve on an already safe, effective, dynamic, and efficient U.S. domestic payments system.

Impact: "We think it is important that any potential CBDC could serve as a complement to, and not a replacement of, cash and current private-sector digital forms of the dollar, such as deposits at commercial banks," Powell said.

Background: A new series on ICBA’s Main Street Matters blog explains what CBDC is, how it compares to other digital assets, and why central banks are pursuing it. Read the latest post.