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American Independent Community Bankers (icba) are asking legislators and regulators to control the cryptocurrency industry. As the CBDCs come into effect, is it going to take small banks?
The president of the icba rebeca romero rainey recently sent a letter to congress urging legislators and regulators to take more proper crypto surveillance, and oppose the efforts of non-bank issuers to gain access to the main account of the Federal Reserve Board.
According to an today on Politico, small community banks are the “darlings” of Washington policymakers on both the left and the right, and they have a “deep well of Washington clout”.
Today's article on Politico says, Small community banks are the "pet peeves" of Washington's political decision-makers on both sides, And they've got a "Washington Weight Deep Well".
Paul Merski, chief relationship officer of the ICBA Congress, says crypto:
"We don't think it should be part of the mainstream banking system and integrated into it." According to icba, the lenders it represents make up 99% of all banks throughout America. According to ICBA, its lenders make up 99% of all banks across the United States.
“We don’t draft the legislation but we’re probably often the first trade association that members turn to to get our review and opinions,”
Opinion
Merski, and the small banks that he is representing, could probably be forgiven for failing to understand what crypto brings to the financial table.
Being a banker doesn't mean you have a good idea about new technologies, like stablecoins and challenge protocols, which are probably completely beyond your comprehension.
These banks also seek to protect themselves and their industry from what they see as a threat to the stability of the financial system in which they operate.
However, it’s not really known just how much breadth of understanding that these small banks have in relation to central bank digital currencies ().
Would they understand that they are in danger of being shut out and ultimately bankrupted by central banks that probably would not need them as third parties?, are significant enough.
With wholesale CBDCs, there may be a place for the big commercial banks, at least for starters.
Retail cbdcs would open a direct channel between the central bank and the wallet of each citizen, with no bank third party needed. In conclusion, whatever solution the small Community banks choose, their days may seem to be numbered.
So in conclusion, no matter how small community banks choose to proceed, it may seem like their days are running out.
