The Consumer Federation of America filed the below comment to the US Department of the Treasury in response to the Request for Information Related to the Executive Order, ‘‘Modernizing Payments To and From America’s Bank Account.’’

CFA was joined by Americans for Financial Reform Education Fund, National Consumers League, Consumer Action, Consumer Reports, and the National Consumer Law Center (on behalf of its low-income clients).

The Letter:

• emphasizes the necessity for the Treasury Department to continue to offer paper checks as an option to send and receive funds.
• notes that Treasury should partner with more than one bank to offer unbanked consumers a choice of how they receive funds.
• calls on Treasury to consider how any increased use of digital payments could simultaneously expand access to banking services for traditionally underserved communities.
• warns of the risks to cybersecurity and privacy posed by the use of private stablecoins for government payments.
• warns of risks posed when the firewall between commercial companies and banking is breached.
• expresses concerns that the instability of stablecoins could have negative effects on household financial stability.
• points out the potential for conflicts of interest when the government entrusts private companies with government funds.