Cryptocurrency offers potential opportunities and some risks for credit unions
NCUA Chairman Todd Harper issued a Letter to Credit Unions in December, both confirming and clarifying the authority that federally insured credit unions have to offer cryptocurrency services to their members through third party service providers. According to NCUA, cryptocurrency or digital assets are just a few of the terms used to describe distributed ledger technology (DLT) based tokens
The guidance from the industry’s top regulator opens the door for Credit Unions to explore offering crypto services to their members via third party relationships, while ensuring the necessary legal, regulatory, compliance and member disclosure requirements are met.
An attractive opportunity
Cryptocurrency exploded into the spotlight in 2021. According to Pew Research, 16% of Americans claim to have ever invested in, traded or used cryptocurrency. Half of these owners. bought cryptocurrency in the past 12 months
Crypto investors represent an attractive market for credit unions. According to some studies, half of crypto owners are under 35 years of age and three-quarters see their crypto investments as an opportunity to increase personal wealth.
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