HSFC United on Need for CBDC, Differing Only on How to Construct It

In this report, we assess today’s sparsely-attended HFSC fintech task force hearing on Full Committee Chairwoman Waters’ (D-CA) draft legislation that would create retail FedAccounts and provide monthly payments to consumers during the pandemic. Similar to Senate Democratic legislation (see FSM Report CBDC), the proposal would allow consumers that are eligible for stimulus payments to create FedAccounts that would be available through banks, credit unions, Federal Reserve Bank branches, and the USPS in certain circumstances. The chairwoman argued that her proposal would improve financial inclusion.