- Federally-Insured Credit Union, commonly known as NAFCU, warned about CBDCs.
- This warning is regarding the theory that the cost required for developing a CBDC outweighs the benefits which are being hypothesized by the public.
- NAFCU said that credit unions would be a great alternative to CBDCs.
Government’s Take on CBDCs
Everyone is talking about the benefits of Central Bank Digital Currency or CBDC.
Companies believe government should apply this concept, and many crypto lovers are extremely bullish on this idea.
But it seems that the US government doesn’t like it very much. This statement is that the National Association of Federally-Insured Credit Union, commonly known as NAFCU, gave a warning regarding CBDCs.
This warning is regarding the theory that the cost required for developing a CBDC outweighs the benefits which are being hypothesized by the public.
This letter was sent on July 5.
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The Policy
To the US Federal Reserve, a memo was sent earlier in May. The memo warned that the rollout of CBDCs to the public would destroy the financial stability of cryptocurrencies.
The response to this executive order requiring the institution to establish a framework has been commented on by the Commerce Department. This framework is used for enhancing the competitiveness which is being provided by the US economy in the field of virtual assets.
The Bitcoin Policy Institute submitted a research paper on July 5. This paper is being published in the Commerce Department.
It was argued that the CBDCs would promote inclusivity in the finance world with the help of the US to build the virtual infrastructure. This is also done to be competitive.
NAFCU said that credit unions would be a great alternative to CBDCs.
They hope to increase financial inclusion in the US communities with the government’s help.
Source: https://www.thecoinrepublic.com/2022/07/08/cost-of-cbdcs-outweighing-the-benefits/