Visa Cryptocurrency

Cryptocurrency 101 | CUNA News

Cryptocurrency 101 | CUNA News
Written by publishing team

While cryptocurrency has been around for more than a decade, there is still scope for credit union involvement in these digital assets, which are now worth more than $2 trillion, says Larry Bruce, senior vice president at Strategic Resources Management.

The first step towards getting involved in cryptocurrency is to ensure that the board of directors and senior management know what it is and are aware of the risks involved, as Bruce told attendees of the virtual roundtable of the CUNA Council, to “build knowledge of cryptocurrencies together.”

He explains that Cryptocurrency is a digital asset designed to act as a medium of exchange or for store value. It resides in a decentralized digital ledger known as blockchain, “similar to the internet for emails or what railroads are for trains. Blockchains are rails and trains are cryptocurrency.”

The value of cryptocurrencies reached nearly $3 trillion sometime in 2021. Bruce says the number of cryptocurrency wallets increased from 50 million to 70 million in the past year.

There are about 20,000 cryptocurrency ATMs where people can buy or sell cryptocurrency.

A survey conducted by Visa revealed that 94% of household decision makers are familiar with cryptocurrency and 33% own cryptocurrency. Eighteen percent said they are likely or very likely to change banks based on crypto services.

While Bitcoin is the most popular cryptocurrency, there are thousands of them, including Ethereum, Litecoin, and Cardano.

Financial regulators have influenced cryptocurrency. Kona believes that Congress should look for ways to enable credit unions to provide digital asset services so that regulators can provide appropriate oversight.

The digital currency is particularly attractive to younger consumers, says Ron Hammond, director of government relations with the Blockchain Association.

Three-quarters of global financial executives believe that failure to offer digital asset services will hurt them competitively, according to a 2021 Deloitte study. These services include holding members’ keys, mobile trading or online banking, creating reward programs, and issuing coins Fixed metal.

Bruce says the adoption of crypto services can help credit unions engage consumers, noting that PayPal more than doubled its engagement a month after announcing its crypto product.

Related: Ignore cryptocurrency at your own risk

.

About the author

publishing team