February 28, 2023

Berger expresses support for bill prohibiting Fed issuance of CBDC

CapitolNAFCU President and CEO Dan Berger wrote to Rep. Tom Emmer, R-Minn., to express support for introducing the CBDC Anti-Surveillance State Act as it would assuage privacy concerns and protect the stability of the financial system. The bill would prohibit the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) and prevent the Fed from using a CBDC to implement monetary policy.

In the letter, Berger stated that the Fed creating a CBDC and offering accounts to individuals “would constitute a massive expansion of their mission and threaten to erode the financial system.”

“NAFCU expects that the net costs of a CBDC will exceed the benefits, and that administration of a CBDC will distract from the Federal Reserve’s dual mandate of achieving both stable prices and maximum sustainable employment,” added Berger.

NAFCU has shared these concerns with the Fed, Treasury, and Commerce Department.

The association will continue to engage lawmakers to advocate for the credit union industry and the safety and soundness of the American financial system.