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CBDC, consumer protection, digital dollar, ETA, Federal Reserve, guidelines, payments, payment industry, principles, private sector, recommendations, regulations, trade associations, transactions
The Electronic Transactions Association (ETA) has proposed a set of guidelines for the creation of the U.S. Central Bank Digital Currency (CBDC), also known as the digital dollar. The organization brought together hundreds of companies in the payments industry and reaffirmed its commitment to ensuring that all Americans have access to financial services.
ETA is the world’s leading trade association, representing the interests of companies involved in providing products and services related to electronic transaction processing. Among its more than 500 members, including Visa, Mastercard, PayPal, Bank of America, Google, Apple, and many other players in the field.
In a document published in its official publication “Trading Trends”, ETA listed “7 guiding principles”, which any CBDC should be based on. The industry association firmly believes that the US government should carefully consider these principles to ensure that the CBDC proposal can meet consumer needs and promote financial inclusion. When this version was released, the Federal Reserve was working on a digital version of the U.S. dollar. As news.Bitcoin.com recently reported, some prototypes will be released in July.
ETA insists that it must ensure that consumers continue to “access powerful and innovative secure banks and payment methods.” It also warned that although the adoption of CBDC will bring certain benefits, Washington should also consider “inherent costs and risks.” These may vary, depending on how the CBDC is designed.
“Innovation” It is the first principle listed by the association. The introduction of CBDC should promote innovation in many areas, such as strengthening network security and consumer protection, and expanding access to financial services. Regulators must also find “The right work tool“Compare the CBDC design with the existing payment system and consider its continuous improvement.
The industry association believes that competition in the payment industry is critical to maintaining the efficiency of domestic and international payment processes. “Involvement of the private sector” It is very important in the design and distribution of CBDC.And, since any central bank digital currency will be introduced into the established ecosystem, please make sure “Interoperability” Other payment systems are also necessary.
“Openly Accepted” According to ETA, this is another important principle, and consumers will be more likely to adopt a CBDC that can be used on existing networks and supported by known payment methods. Merchants who accept the card should also be able to use CBDC.
“Consumer Protection” This is also a key area. ETA points out that the framework of digital currency should ensure the privacy and security of every in-person and online transaction.The organization also advocates the adoption of “Regulations tailored to the risk profile of participants,“, which considers the activities of each entity and the risks associated with it.
ETA CEO Jodie Kelley vowed that the organization and its members will work with the US government to ensure that all US citizens continue to receive important financial services. Kelly pointed out: “These’CBDC 7 Guiding Principles’ aim to assess whether the benefits of any proposal outweigh the disadvantages, and significantly enhance the current innovative, ubiquitous and secure payment ecosystem that makes financial service access a reality. .”Press release.
What is your opinion on the CBDC guidelines issued by the Electronic Transactions Association? Share your thoughts on this topic in the comments section below.
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