Credit unions that are considering dipping their toes into the proverbial waters of cryptocurrency services for their members must consider the risk of doing so. There are counter-party risks, regulatory risks and reputational risks, among others. There are also risks for not engaging with crypto – such as being left behind, being perceived as not progressive, not educating your members, and allowing your members to find the services they want elsewhere.
Recent news of the devaluation of digital currencies and layoffs at cryptocurrency exchanges have led many to question the future of crypto – is the current state of the industry just a bump in the road or the start of crypto’s decline? While time will only tell, here are various aspects to take into consideration when deciding if participating in cryptocurrency is right for your credit union.
Services that Credit Unions Could Offer
Holding digital assets on your ledger is not something that can be considered at this time, as being a custodian of decentralized cryptocurrency represents volatility, which could cause harm to the insurance fund that backs our trust in the financial system. Even stablecoins, until they become regulated, represent a risk to asset valuation, despite their name.
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