January 20, 2022

Toomey Statement on Fed’s Central Bank Digital Currency Report

Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) released the following statement after the Federal Reserve released a report on Central Bank Digital Currencies (CBDCs).

“Cryptocurrencies, digital assets, and their underlying technologies offer tremendous potential benefits. As such, I’m glad the Fed has constructively contributed to the necessary ongoing public discussion regarding the issuance of a CBDC. 

“I’m encouraged the report acknowledges the need for clear support from Congress prior to the issuance of a CBDC. The report also rightfully recognizes that the Fed offering retail accounts is not only a terrible idea, but also impermissible by law.

“While the report mentions the importance of CBDC privacy, I’m concerned the Fed does not clearly explain how it would protect consumer transaction data. There’s also a question in my mind whether the Fed’s report implies that a CBDC would not allow for direct peer-to-peer transactions. This characteristic is fundamental.

“Today’s report is an important step by the Fed in acknowledging the permanence of cryptocurrencies and their underlying technologies. I look forward to working with the Fed and my colleagues in Congress to consider the authorization of a properly designed CBDC.”

To watch Ranking Member Toomey’s exchange with Chairman Powell on CBDCs during last week’s Senate Banking Committee hearing, click here.