February 23, 2023

Bills to prohibit CBDC, leverage document tech introduced in House

US Capitol buildingAlthough Congress is in recess, lawmakers continue to introduce legislation, including two NAFCU-supported bills. One, introduced by Rep. Tom Emmer, R-Minn., would prohibit the use of a central bank digital currency (CBDC).

While NAFCU is supportive of a clear regulatory framework for cryptocurrency and other financial technologies, the association has consistently opposed the creation of a CBDC. NAFCU has argued that the costs outweigh the benefits and that credit unions represent a superior and safer alternative for advancing financial inclusion goals and promoting affordable access to payments. The association has shared its concerns with the FedTreasuryCommerce Department, and Congress.

Digital assets are a hot topic in Washington as lawmakers and regulators consider efforts to effectively monitor and leverage these technologies. The House Financial Services Committee has a new subcommittee focused on these issues. The subcommittee is chaired by Rep. French Hill, R-Ark., who has been a leading voice in Congress as it explores the possibility of a CBDC. Emmer also serves on this subcommittee.

Rep. Kelly Armstrong, R-N.D., also reintroduced legislation to allow for remote and electronic notary, among other things. NAFCU Senior Vice President of Government Affairs Greg Mesack sent a letter to leaders of the House Energy and Commerce Committee Wednesday offering support for the Securing and Enabling Commerce Using Remote and Electronic Notarization Act (H.R. 1059). Mesack said the bill “will modernize long-standing issues with processing legal documents” and the use of Remote Online Notarizations (RON) nationwide “would have an immediate benefit, especially for our service members who are often deployed or traveling.”

NAFCU will continue to engage lawmakers on these issues and more to ensure credit unions can effectively serve their 134 million members. Stay tuned to NAFCU Today for the latest out of Washington.