WASHINGTON—With attention and interest around cryptocurrency growing among consumers, Kyle Hauptman told credit unions he is committed to ensuring the movement does not fall behind in playing the crypto space and “go the way of Blockbuster.”
Kyle Hauptman tells GAC the 'agency must evolve.'
The NCUA board’s vice chairman made that promise to attendees at CUNA’s GAC Tuesday, adding the agency must evolve in the area of cryptocurrency and blockchain as must the credit unions it regulates.
But he also emphasized he is aware none of that will happen if NCUA does not first provide clarity around cryptocurrency offerings at credit unions. Analysts have stated that while some CUs have already entered the crypto space, as CUToday.info has reported, it may be wiser for cooperatives to wait until the agency issues some guidance around CUs before offering crypto to members.
Yet those waiting to make a decision comes at the same time, as Hauptman stressed, fear exists among some credit unions and banks that traditional financial institutions may lose out to other entities offering cryptocurrency to U.S. consumers.
“Many feel traditional financial institutions will lose out to a decentralized form of finance,” he said. “But I don’t want to see credit unions go the way of Blockbuster video because their regulator did not evolve and give them clarity around (cryptocurrency). We know we have to provide credit unions clarity here so they can compete.”
Potential New Revenue Stream
Hauptman added if credit unions can offer crypto to members with certainty around how the agency will look at the offerings and also provide some assistance to CUs in how to effectively engage with digital currency, credit unions could have a new non-interest-income revenue stream.
Hauptman said it is his hope that at some point venture capital firms in the crypto space will recognize how credit unions can be a beneficial partner and even design products for cooperatives around crypto offerings, allowing CUs to begin to do new things with digital payments.
Great Story to Tell
“I think we need to publicize that credit unions are a new market for venture capital firms…If we do this right we will have a great story to tell at the GAC in 2023,” Hauptman said.
Hauptman also addressed how the agency is committed to making examinations more effective and fair for credit unions by relying on more CU feedback. He called the opportunity to record CU examinations as a good step toward that effort, and that in pilot programs NCUA has conducted with recording exams to date results have been good for credit unions.
Kyle Hauptman tells GAC the 'agency must evolve.'
The NCUA board’s vice chairman made that promise to attendees at CUNA’s GAC Tuesday, adding the agency must evolve in the area of cryptocurrency and blockchain as must the credit unions it regulates.
But he also emphasized he is aware none of that will happen if NCUA does not first provide clarity around cryptocurrency offerings at credit unions. Analysts have stated that while some CUs have already entered the crypto space, as CUToday.info has reported, it may be wiser for cooperatives to wait until the agency issues some guidance around CUs before offering crypto to members.
Yet those waiting to make a decision comes at the same time, as Hauptman stressed, fear exists among some credit unions and banks that traditional financial institutions may lose out to other entities offering cryptocurrency to U.S. consumers.
“Many feel traditional financial institutions will lose out to a decentralized form of finance,” he said. “But I don’t want to see credit unions go the way of Blockbuster video because their regulator did not evolve and give them clarity around (cryptocurrency). We know we have to provide credit unions clarity here so they can compete.”
Potential New Revenue Stream
Hauptman added if credit unions can offer crypto to members with certainty around how the agency will look at the offerings and also provide some assistance to CUs in how to effectively engage with digital currency, credit unions could have a new non-interest-income revenue stream.
Hauptman said it is his hope that at some point venture capital firms in the crypto space will recognize how credit unions can be a beneficial partner and even design products for cooperatives around crypto offerings, allowing CUs to begin to do new things with digital payments.
Great Story to Tell
“I think we need to publicize that credit unions are a new market for venture capital firms…If we do this right we will have a great story to tell at the GAC in 2023,” Hauptman said.
Hauptman also addressed how the agency is committed to making examinations more effective and fair for credit unions by relying on more CU feedback. He called the opportunity to record CU examinations as a good step toward that effort, and that in pilot programs NCUA has conducted with recording exams to date results have been good for credit unions.
CUToday
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