Comprehensive digital asset framework would aid adoption

August 8, 2022

Digital asset innovations represent new opportunities for consumers and credit unions, CUNA wrote to the Treasury Monday in response to a request for information on digital asset development. CUNA notes 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 encourages their financial health and well-being,” the letter reads. “Innovations related to digital assets provide a new and unique avenue for credit unions to continue this mission with a significant percentage of their members already invested in cryptocurrencies.”

CUNA adds several steps that could aid in increased adoption of digital assets:

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

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

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