Digital Assets

Stablecoins: Stablecoins are a form of digital asset that is intended to maintain a 1-to-1 peg with a reference asset often by holding reserves as collateral. Stablecoins are unique among digital assets in that they mimic commercial bank money with potential use as a means of payment and as a store of value. Payment stablecoins have the potential to disintermediate core commercial bank activity like deposit taking and lending.

Central Bank Digital Currency (CBDC): Retail CBDCs are a form of digital asset that is issued by a central bank, remains as a liability on the central bank’s balance sheet, and is made available to the general public. ABA opposes the issuance of retail CBDCs in the U.S., which would fundamentally rewire our banking and financial system by changing the relationship between individual customers and the Federal Reserve.

Permissibility: There is significant regulatory uncertainty in the digital assets market today and an uneven application of existing rules. Banks are evaluating ways to safely and responsibly allow their customers to buy, sell, hold/custody, and use digital assets through their existing banking relationships.