The Future of Money
When the International Monetary Fund and the World Bank got together in mid-October, among the many topics of discussion was a report from the G7 on the future of cryptocurrency. Top of mind was Facebook’s proposed cryptocurrency, Libra. The conclusion of the G7 report was that Libra and similar stablecoins (digital currencies backed by traditional money and/or other assets) should not be allowed to launch until the many risks they seem to pose are addressed.
According to the G7 taskforce that compiled its report: “The G7 believes that no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks(are addressed).”
There’s fear that such currencies could destabilize the global monetary system if left unregulated. There’s also concern that mainstream use of cryptocurrency could impede the fight against crimes like terror financing and money laundering.
Despite the fact that about a quarter of Libra’s corporate sponsors, including Visa and Mastercard, bailed on the project earlier in October, Calibra, the Facebook-led group behind Libra, pledged to move forward and work with regulators as needed.
Will Libra ever see the light of day? Does it matter? No, it doesn’t, because if Libra does die on the vine, something similar won’t be far behind. Cryptocurrency and stablecoins are going to be a part of our financial futures whether we like it or not.
If you’re like the other CUs I’ve worked at and for, I imagine you’re worried about the same things you’ve always worried about. And you’re probably asking yourself, “Do I really need to worry about crypto currency?”
The answer is patently yes, you do! Credit unions expecting to remain relevant in the coming age of digital currency must decide how to play a meaningful role in the developing cryptocurrency/stablecoin space.
That’s why DaLand CUSO, recently announced the availability of the Coin2Core Extended Ecosystem Wallet™ (C2C), a solution that allows credit unions to use their existing core platforms to vault/process cryptocurrency, stablecoins, and digital assets for their members.
Vaulting is only Phase 1 of the project, though. The second phase will address exchanges between fiat and cryptocurrencies. (DaLand has solved for this.) And the third and final phase entails the formation of local transaction networks based on credit unions being a trusted epicenter s in the community merchant payments ecosystem. (DaLand has also solved this!)
The point is this: If your list of top priorities doesn’t include a digital/cryptocurrency strategy, you’re working off an outdated list and likely heading for irrelevance. Let us help you update your list to align with the trends and secure current and future community relevance.