Home Framework A Comprehensive Digital Asset Framework Would Ease Adoption | 2022-08-08

A Comprehensive Digital Asset Framework Would Ease Adoption | 2022-08-08

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Digital asset innovations represent new opportunities for consumers and credit unions, CUNA wrote to the Treasury on Monday in response to a request for information on digital asset development. CUNA notes that credit unions support a “whole of government” approach to the issue, as outlined in President Joe Biden’s March executive order on the subject.

“Credit unions have a long history of serving their members in a direct, individualized way that promotes their financial health and well-being,” the letter reads. “Digital asset innovations offer credit unions a new and unique avenue to pursue this mission with a significant percentage of their members already invested in cryptocurrencies.”

CUNA adds several steps that could contribute to increased adoption of digital assets:

  • A comprehensive regulatory framework that provides consistent oversight for similar products and services.
  • Clear data security and privacy requirements.
  • A level playing field between traditional financial services and fintechs to ensure that consumers can use their most trusted financial partner.

CUNA also notes that digital assets can provide an entry point for unbanked people to receive safe and affordable financial services, but adds that credit union services go far beyond deposit accounts.

The letter also reiterates CUNA’s concerns regarding the central bank’s digital currency proposals. The CUNA believes that the creation of a CBDC could “significantly worsen the provision of financial services”.