DCUC Outlines Concerns on CBDC to House Financial Services Committee

WASHINGTON, D.C. – Earlier this week, the Defense Credit Union Council (DCUC) sent a letter to the House Financial Services Committee (HFSC) regarding the regulation of stablecoins and concerns over a potential U.S. Central Bank Digital Currency (CBDC).
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DCUC supports a federal framework for payment stablecoins that ensures regulatory parity, interoperability, and protection for credit unions.

DCUC strongly opposes retail CBDC, due to: financial disruption (a CBDC could draw deposits away from community banks and reduce access to credit), privacy risks and cybersecurity threats, and notes that existing payment innovations already improve efficiency without the need for a CBDC.

DCUC requested Congress to maintain strict oversight on currency and payment system changes and to endorse H.J.Res. 64 to ensure major financial policy decisions are democratically debated rather than imposed by regulatory agencies.

“We’re asking for a stablecoin framework that promotes innovation while protecting financial institutions,” says Stverak, “and needed to stress why it's important to oppose the implementation of a CBDC, due to the significant risks and unclear benefits.”

For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.