CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » What’s next for cryptocurrency and blockchain?
Technology

What’s next for cryptocurrency and blockchain?

Company coins, smart contracts could affect deposits and lending.

July 19, 2022
Brock Fritz
2 Comments
2022_07_John-Best_1200
Best Innovation Group Co-Founder/CEO John Best.

While the cryptocurrency market took a downturn through the first five months of 2022 and continues to do so, financial services software entrepreneur Christopher Beltran predicts “there will be a lot of building happening” in cryptocurrency and blockchain applications in the next few years.

John Best, Best Innovation Group co-founder/CEO, agrees, adding “we’re not seeing a bunch of people dump out” of their cryptocurrency investments.

He compares crypto to the dot-com bubble in the early 2000s, recalling how after the bubble burst, companies like Google became among the world’s largest. Some of these companies are eyeing cryptocurrency.

“Amazon hired a load of really impressive crypto people,” says Best, who hosted a recent discussion on crypto and the metaverse. “Why would they do that unless they had a good business case?”

He asked session attendees what would happen if Amazon made its own digital coin and gave a significant discount to people who used it to purchase Amazon products.

“Anybody who is price conscious would leap at that because savings is savings,” Beltran says. “I don’t know if they’d necessarily perceive it as, ‘Wow, this is the most valuable coin on earth.’ It would be seen more as just another coupon play. I’d probably use it. Why not? You’re going to get savings."

Best believes trust will be a key to the success of such a coin because trust brings prices down and service up.

“I also think they see an opportunity to make money,” Best says. “There are too many middlemen in the payments process, and they’re only there because they’re using previous technology that isn’t necessarily useful today.”

‘It's time to build.’
Christopher Beltran

If Amazon or another company creates a coin, what impact would it have on credit unions? Best says credit unions could be disintermediated, and that deposits could be lower if money filters out of traditional financial institutions and into new digital coins and blockchain applications.

Blockchain technology could also lead to smart contracts. Historically, if a contract is violated today, a judge or jury mandates what happens next, and law enforcement enforces the handover of the asset.

Conversely, Best suggests the auto market is moving toward smart contracts. “We give a loan to a person and the contract says if you pay your loan, you get to drive this car. If you do not pay your loan after X amount of time, the car is ours. If you stop paying your loan, not only does your car cease to work, it drives itself back to the credit union branch.”

CUNA Technology Council

Beltran says smart contracts would be easier to enforce and could be settled directly by the lender.

“A smart contract code—by virtue of the assets being talked about in the contract having some sort of digital representation and being in a wallet that’s accessible and open—can have a handle or a grip, almost like a mini escrow piece, on that asset,” he says. “Having a contract physically able to act on the asset when conditions are met is an interesting form of enforcement because you almost don’t need a justice system or legal framework to guide transactions and liabilities enforcement.”

The ability to digitally track ownership is a key aspect of blockchain, and one that will be crucial for future applications for cryptocurrency. Beltran says now is the time to develop those applications regardless of the market’s downturn.

“I don’t see anything fundamentally being questioned about blockchain,” he says. “It’s fairly predictable it was going to go down just because the whole world is going down. At the basic high level, nothing really worries me right now. It’s almost like it’s bargain time. It’s time to build.”

KEYWORDS blockchain cryptocurrency innovation technology

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Rock Stars 2023

Rock Stars 2023

Credit Union Rock Stars are outstanding credit union professionals and directors from a wide range of disciplines who inspire and innovate to advance the missions of their credit unions. The 25 members of the 11th class of Rock Stars were selected for their exceptional creativity, innovation, and passion.
Digital Edition •  Subscribe

Trending

  • Meet the 2023 Credit Union Rock Stars

  • Senate Banking Committee passes cannabis banking bill

  • Senate committee to mark up SAFER Banking Act this week

Polls

Do you plan to use the FedNow instant payment service?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us