Your members and cryptocurrency

As Bitcoin and other popular cryptocurrencies continue to develop and increase in popularity, credit unions should know what that means for them. The number of members who explore cryptocurrencies is expected to continue to rise, so knowing how to educate them is important.

What is cryptocurrency? 

Cryptocurrency is a form of currency that only exists digitally and relies on encryption for the security of transactions. There are thousands of forms of cryptocurrency, with some of the best known named Bitcoin, Ethereum and Ripple.

The National Credit Union Administration’s 2018-2022 Draft Strategy Plan last fall released comments on this technology saying, “The emergence and the increasing importance of digital currencies predicted by many analysts may pose both risks and opportunities to consumers, credit unions, banks and financial regulators.” The report’s authors later add, “These trends are likely to continue, and even accelerate, through 2022.”

 

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