The American Bankers Association says only insured depository institutions should have access to the central bank and be authorized to issue most types of smart cards.

"The existing framework for regulating and supervising banks, together with deposit insurance, provides customers with a fundamental assurance that institutions engaged in payments system activities operate in a safe and sound manner," the ABA wrote in an 83-page policy statement on electronic money issued Sunday at its convention here.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.