Bloomberg Law, June 22, 2022, A Digital Dollar for the Unbanked? Banks, Consumers See Pitfalls
Most fintech companies aren’t covered by the Community Reinvestment Act, a 1977 law that requires regulators to measure bank lending to low-income urban and rural areas.
Bank holdings of digital dollars probably wouldn’t be covered either, because the law only applies to deposits backed by the Federal Deposit Insurance Corp.
“If you have fewer deposits that have a CRA obligation, you’re going to see more problems not being solved in communities,” said Adam Rust, a senior advisor at the National Community Reinvestment Coalition. “You’re going to see housing blight be sustained. You’re going to see affordable housing not being created. It’s a real problem.”
