The NAFCU Journal January - February 2018 - 21

Blockchain could also be used by credit
unions to manage digital identities for
their members. "A permissioned ledger
framework for customer onboarding
could pave the way for establishing
collective trust in digital identities,"
Morris said.
A credit union could, for example, assign
credentials to an established member,
who in turn could share those credentials with other institutions having access
to the blockchain. This could make it
possible for institutions having access
to such records to reduce the number of
required onboarding steps for membership, speed transactions and simplify
certain reporting functions.
Blockchain can be configured to maximize decentralization, with each party
on an open blockchain having access
to the entire database and its history.
Vinay Gupta, who founded a fund that
invests in a globalization project called
the Internet of Agreements, noted
blockchain's potential impact on banking
in a Harvard Business Review article. If
the process of using ATMs, for example, "had been invented today, with the
blockchain as state-of-the-art database
technology as an option, we would
most likely not need an administrative
entity like Visa to manage the process,"
he wrote. "Instead, the technology itself
would do the heavy lifting of uniting the
interests and business processes of the
member banks."
NAFCU has been monitoring blockchain development for some time
and supports all efforts that might
advance credit unions. However, it sees
Hyperledger, which includes some of
the world's largest financial services
companies as well as Oracle, American
Express, IBM Corp., Cisco, Intel and R3
among its members, as a mature effort
with big players working toward achieving the same goal.
"We thought it was important for Hyperledger to gain insight into the credit
union industry and give credit unions
the ability to explore and be participants
in a global initiative that is developing

technology that will make it easier to
do business in the future," said Berger.
"We believe credit unions can benefit by
participating - whether through Hyperledger or any number of other forums
currently weighing the technology."
He said that given the variety of
approaches to blockchain, NAFCU is
looking to work with other consortia as
well. More recently, NAFCU became the
first nonprofit financial services trade
association to join Enterprise Ethereum
Alliance (EEA), the world's largest opensource blockchain initiative.
Credit unions' role in the Hyperledger
project was addressed by both organizations in December during a meeting of
NAFCU's Cybersecurity and Payments
Committee, which is made up of association member credit union representatives; a NAFCU member call-in with
Hyperledger representatives was held in
early January.
Additionally, the association is
lending Hyperledger its expertise
in the government affairs realm,
particularly in the areas of regulation
and compliance, and will participate in
efforts to ensure contracts and other
transactions executed via blockchain
are compatible with data security
standards and other requirements
affecting credit union operations.
Hyperledger was working last fall to
create a financial working group, and
NAFCU will encourage member credit
unions to share their expertise and
provide thought leadership on various
blockchain use cases that offer value to
the credit union industry.
"Blockchain stands to be transformative
for the financial services industry,
especially credit unions," said Berger.
"NAFCU, through its membership in
the global Hyperledger project and
others, hopes to broaden the discussion
regarding blockchain's capacity to deliver
competitive solutions to credit unions."
Susan M. Broaddus is director of
communications for NAFCU.

THE NAFCU JOURNAL JANUARY-FEBRUARY 2018

21



Table of Contents for the Digital Edition of The NAFCU Journal January - February 2018

Conferences
From the Chair
Advocacy Snapshot
Washington and Industry Briefs
Growth Strategies
Stepping Into the Future
A Clear Path Forward
Economic Outlook: It’s Complicated
NAFCU 2018 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January - February 2018 - Cover1
The NAFCU Journal January - February 2018 - Cover2
The NAFCU Journal January - February 2018 - 1
The NAFCU Journal January - February 2018 - 2
The NAFCU Journal January - February 2018 - Conferences
The NAFCU Journal January - February 2018 - From the Chair
The NAFCU Journal January - February 2018 - 5
The NAFCU Journal January - February 2018 - Advocacy Snapshot
The NAFCU Journal January - February 2018 - 7
The NAFCU Journal January - February 2018 - Washington and Industry Briefs
The NAFCU Journal January - February 2018 - 9
The NAFCU Journal January - February 2018 - 10
The NAFCU Journal January - February 2018 - 11
The NAFCU Journal January - February 2018 - 12
The NAFCU Journal January - February 2018 - 13
The NAFCU Journal January - February 2018 - 14
The NAFCU Journal January - February 2018 - 15
The NAFCU Journal January - February 2018 - Growth Strategies
The NAFCU Journal January - February 2018 - 17
The NAFCU Journal January - February 2018 - Stepping Into the Future
The NAFCU Journal January - February 2018 - 19
The NAFCU Journal January - February 2018 - 20
The NAFCU Journal January - February 2018 - 21
The NAFCU Journal January - February 2018 - A Clear Path Forward
The NAFCU Journal January - February 2018 - 23
The NAFCU Journal January - February 2018 - 24
The NAFCU Journal January - February 2018 - 25
The NAFCU Journal January - February 2018 - Economic Outlook: It’s Complicated
The NAFCU Journal January - February 2018 - 27
The NAFCU Journal January - February 2018 - 28
The NAFCU Journal January - February 2018 - 29
The NAFCU Journal January - February 2018 - 30
The NAFCU Journal January - February 2018 - 31
The NAFCU Journal January - February 2018 - 32
The NAFCU Journal January - February 2018 - 33
The NAFCU Journal January - February 2018 - 34
The NAFCU Journal January - February 2018 - NAFCU 2018 Vendor Directory
The NAFCU Journal January - February 2018 - 36
The NAFCU Journal January - February 2018 - 37
The NAFCU Journal January - February 2018 - 38
The NAFCU Journal January - February 2018 - 39
The NAFCU Journal January - February 2018 - 40
The NAFCU Journal January - February 2018 - 41
The NAFCU Journal January - February 2018 - 42
The NAFCU Journal January - February 2018 - 43
The NAFCU Journal January - February 2018 - 44
The NAFCU Journal January - February 2018 - 45
The NAFCU Journal January - February 2018 - 46
The NAFCU Journal January - February 2018 - 47
The NAFCU Journal January - February 2018 - 48
The NAFCU Journal January - February 2018 - 49
The NAFCU Journal January - February 2018 - 50
The NAFCU Journal January - February 2018 - 51
The NAFCU Journal January - February 2018 - Executive Spotlight
The NAFCU Journal January - February 2018 - 53
The NAFCU Journal January - February 2018 - Management Insight
The NAFCU Journal January - February 2018 - 55
The NAFCU Journal January - February 2018 - Compliance Central
The NAFCU Journal January - February 2018 - 57
The NAFCU Journal January - February 2018 - Inside NAFCU Services
The NAFCU Journal January - February 2018 - 59
The NAFCU Journal January - February 2018 - From the President’s Desk
The NAFCU Journal January - February 2018 - Cover3
The NAFCU Journal January - February 2018 - Cover4
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