ABA Statement on White House Executive Order on Digital Assets

“We share the Biden administration’s interest in responsible financial innovation. Ensuring that consumers, investors and businesses are protected from the potential financial risks posed by digital assets should be a priority for the government, and we believe that can only be achieved through careful coordination with the private sector, including the banking industry. America’s banks remain at the leading edge of payments innovation including real-time payment options already available today. Banks are also quickly and responsibly integrating digital asset offerings, giving consumers access to these new products from a regulated provider they can trust. 

“While much of the executive order calls on federal agencies to assess the expanding marketplace of digital assets before recommending new rules, we are concerned that it clearly directs federal agencies to begin pursuing a central bank digital currency even before determining if a U.S. CBDC is actually ‘in the national interest’ as the order also requires. We urge the administration and the agencies involved to carefully consider the implications of a U.S. CBDC, which could fundamentally reshape our banking and payments system to the detriment of bank customers and their communities. We believe the Federal Reserve’s ongoing CBDC review is the right venue for this discussion and will allow all stakeholders the opportunity to provide input and fully evaluate any unintended consequences of a CBDC before legislation is introduced that could shape it. To date, we have yet to see evidence that a U.S. CBDC solves any existing problems or improves on our constantly evolving financial system that remains the envy of the world. 

“We look forward to working with the administration and government agencies as they carefully consider the implications of these important and complex policy decisions.”