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.
May 22, 2024
With the House expected to vote this week on ICBA-supported legislation to restrict the development of a U.S. central bank digital currency, ICBA is calling on community bankers to urge their members of Congress to support the bill.
Grassroots Alert: Community bankers can use ICBA's Be Heard grassroots action center to call on their lawmakers to support the CBDC Anti-Surveillance State Act (H.R. 5403), which would address many of ICBA’s concerns with the creation of a CBDC.
Bill Details: The bill—which community banker grassroots advocacy during the recent ICBA Capital Summit helped bring to the House floor—would:
Prohibit the Federal Reserve Banks from offering products or services directly to individuals, maintaining individual accounts, or issuing a CBDC to individuals or through an intermediary.
Prohibit the Federal Reserve and the Federal Open Market Committee from using a CBDC to implement monetary policy.
Background: In a letter to House members, ICBA commended House Speaker Mike Johnson (R-La.) and House Minority Leader Hakeem Jeffries (D-N.Y.) for scheduling floor consideration of H.R. 5403 and urged lawmakers to advance the bill.
ICBA View: ICBA has repeatedly expressed opposition to the creation of a U.S. CBDC, recently requesting from U.S. agencies federal records on whether legislative changes are required to issue a U.S. CBDC.
