Electronic Transactions Association Introduces 7 Guiding Principles For CBDC

Sahaj  |  May 8, 2021

The Electronic Transactions Association (ETA) has recently proposed a set of guiding principles to be considered in the creation of CBDC. The organization does the job of uniting hundreds of companies in the payments industry and confirms its commitment to ensuring access to financial services of all Americans.

Electronic Transactions Association ETA Issues Guiding Principles for CBDC

The leading trade association of the world, ETA, is currently representing the interests of the firms that are involved in providing the products and services concerning electronic transaction processing.

Bank of America, Google, Apple, Mastercard, Visa, PayPal, and other members are included in the list of over 500 companies under the representation of the trade association.

Transaction Trends is an official publication of the trade association, and in a recent document put by the publication, ETA has listed 7 guiding principles against which the Central Bank Digital Currency should be measured.

In addition to this, ETA is fully convinced that the government of the United States should carefully consider these principles to make sure that a CBDC proposal serves the needs of the consumers and furthers financial involvement.

Consumers Must Have Access to a Robust and Innovative Array of Secure Banking and Payment Options

Along with the other data provided, the Electronic Transactions Association insisted that the consumers must be guaranteed continued access to a robust and innovative array of secure banking and payment options. 

Moreover, the trading association warns that though the adoption of the digital currency is linked with certain advantages, Washington should be looking into the inherent costs and risks associated with it.

The launching of a CBDC should catalyze innovation in multiple areas such as strengthening cybersecurity and consumer protection as well as expanding access to financial services. 

In addition to this, it was also mentioned that the regulators have to find the right tool for the job by comparing CBDC designs with existing payments systems.

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