Independent Banker - November 2023 - 5

FLOURISH
" While we have heard a wide range
of rationale [for cryptocurrency],
those concepts don't seem founded
in need as much as in justification. "
Rebeca Romero Rainey
President and CEO, ICBA
n today's environment, we
hear a lot of hype about
different technologies. That buzz
leads to oversaturation, which
can leave us questioning, " Am I
missing something? "
I
When it comes to cryptocurrency,
this is certainly the case. I'm
frequently asked in interviews about
ICBA's thoughts on cryptocurrency,
inclusive of stablecoins and central
bank digital currency (CBDC), and I
typically respond by asking, " What
problem are we trying to solve
with it? " That will often leave the
interviewer stumbling for a response,
because the answer is truly unclear.
While we have heard a wide range
of rationale, those concepts don't
seem founded in need as much as
in justification. Here are three that
spring to mind:
1. The claim that it will
provide support for global
payments is baffling. With a
currently unregulated entity, global
collaboration and compliance
standardization will be essential
to ensure transactions remain
safe, secure and legitimate. In
short, it will take a mountain of
global collaboration to make that
possibility realistic.
2. The thought that
cryptocurrency will enable faster
payments is equally troubling.
Instant payments platforms are
already available in the U.S.-you
can't get much faster than that.
3. The concept of a payments
system that's completely
anonymous and frictionless is
another point of contention. That
anonymity easily can lead (and has
led) to illicit payments, so it may not
be what it's cracked up to be.
Whether it's nonbank payment
providers like PayPal, states that
want to issue their own stablecoins,
CBDC or a piece of legislation trying
to create a regulatory framework,
this is a space to keep a handle on.
Know that ICBA is observing and
advocating on your behalf.
And when it comes to emerging
technology, knowledge is power,
which is why we're offering
opportunities to stay in the know
on cryptocurrency's evolution. We
encourage you to remain up to speed
on developments, whether through
digital asset courses with Community
Banker University (CBU) or our
payment team's online analysis. We
will keep providing information that
helps you know how cryptocurrency is
living up to the hype-or, more than
likely, not.
On a personal note, I wanted to
thank all of you for being part of this
collective community bank journey;
we couldn't do it without you. Have a
wonderful Thanksgiving holiday, and
please take time to celebrate all you
do for your communities. I know they
are, as are we, grateful for you.
Connect with Rebeca @romerorainey
Where I'll be this month
I'll be spending time in our new Atlanta office and kicking
off a round of meetings with executives from core service
providers, continuing to advocate for community bank
needs in this space.
independentbanker.org // 5
Photo by Chris Williams
http://www.independentbanker.org
Independent Banker - November 2023

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