payments. With the cost of sending and receiving digital assets being nearly nothing, this technology is particularly adaptable to remittances and peer-to-peer payments taking place across international borders.


While many cryptocurrencies are in circulation now, the Federal Reserve is currently examining the creation of a digital dollar and is set to release a report later this summer, which will be critical in understanding the financial regulators’ involvement in digital assets going forward. I believe the digital dollar should be seriously considered. With China fighting desperately to displace the dollar as the world’s reserve currency, the digital dollar could play a significant role in our defense of their efforts. However, there are still serious


concerns around issuing a CBDC. Privacy, know- your-customer compliance, BSA/AML compliance, centralized or decentralized modeling, and digital wallet access are all challenges that must be addressed as we progress.


Whether or not they are in your business plan, all financial institutions should be paying attention to cryptocurrencies. Te adoption of these assets and their potential uses are only increasing, and it will serve our financial system well if our institutions, policy makers and regulators have a full understanding of the impacts.


Congressman Blaine Luetkemeyer represents the Third Congressional District of Missouri. He serves on the House Financial Services Committee, as ranking member of the Subcommittee on Consumer Protection and Financial Institutions and ranking member of the House Committee on Small Business.


THE MISSOURI BANKER 13


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