ETA Welcomes the Federal Reserve’s CBDC Discussion Paper
1-20-2022
WASHINGTON — January 20, 2022 — The Electronic Transactions Association (ETA) today welcomes the Federal Reserve Board’s discussion paper Money and Payments: The U.S. Dollar in the Age of Digital Transformation. The paper discusses and seeks comment on whether and how a Central Bank Digital Currency (CBDC) could improve the current domestic payments system.
“We welcome the discussion paper from the Fed and are pleased that it was guided by principles that are consistent with ETA’s own, including whether a CBDC would improve upon the existing robust, fast, and secure payments system,” said Jodie Kelley, CEO of ETA. “We look forward to continuing to work with policymakers on the possible creation of a CBDC.”
As payments experts, ETA has long advocated for an approach to CBDCs that considers potential benefits and unintended consequences and includes an appropriate regulatory framework that is tailored to risk. To this end, ETA released “7 Guiding Principles for CBDC” against which any proposed CBDC should be measured. As the federal government assesses a potential CBDC it should, consistent with these principles, ensure that any proposal best serves the needs of consumers, furthers financial inclusion, preserves and strengthens the financial system, and ensures that consumers continue to have access to a robust and innovative array of secure banking and payment options.
As policymakers and the Federal Reserve consider implementing a CBDC, ETA supports a CBDC that advances these 7 guiding principles:
- Advances Innovation
- Provides the Right Tool for the Job
- Ensures Private Sector Participation
- Allows for Interoperability
- Encourages Open Acceptance
- Strengthens Consumer Protection
- Utilizes Regulation Tailored to the Risk Profile of the Participant
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $22.5 trillion annually in purchases worldwide and deploying payments innovation to merchants and consumers.
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MEDIA CONTACT
Scott Talbott
SVP of Government Affairs
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202.677.7403
About ETA
The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $6 trillion in purchases in the US and deploying payments innovations to merchants and consumers. Learn more: www.electran.org.