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FLOURISH

Cryptocurrency: a solution without a problem -

“As a financial services industry, we can’t fall victim to
shiny object syndrome.”

In today’s environment, we hear a lot of it may not be what it’s cracked up to be.
hype about different technologies. That
buzz leads to oversaturation, which can Whether it’s nonbank payment providers
leave us questioning, “Am I missing like PayPal, states that want to issue their
something?” when we don’t feed into the own stablecoins, CBDC or a piece of
frenzy. legislation trying to create a regulatory
framework, this is a space to keep a handle
When it comes to cryptocurrency, this is on. Know that ICBA is observing and
certainly the case. I’m frequently asked in advocating on your behalf.
interviews about ICBA’s thoughts on
REBECA cryptocurrency, inclusive of stablecoins and As a financial services industry, we can’t fall
ROMERO central bank digital currency (CBDC), and I victim to shiny object syndrome; we need to
RAINEY typically respond by asking, “What problem keep peeling back the onion to determine
what we are solving for, and from ICBA’s
are we trying to solve with it?” That will
ICBA President and CEO. often leave the interviewer stumbling for a perspective, how that can be done in a way
rebeca.romerorainey@icba.org
response because the answer is truly that works with and for community banks.
ACB is the ICBA unclear.
Arkansas state affiliate. With emerging technology, knowledge is
While we have heard a wide range of power, which is why we’re offering ongoing
rationale, those concepts don’t seem opportunities to stay in the know on
founded in need as much as in justification. cryptocurrency’s evolution. We encourage
Here are three that easily spring to mind: you to remain up to speed on
1. The claim that it will provide support for developments, whether through digital
global payments is particularly baffling. asset courses with Community Banker
With a currently unregulated entity, University (CBU) or our payment team’s
global collaboration and compliance online analysis. We will keep providing
standardization will be essential to information that helps you know how
ensure that transactions remain safe, cryptocurrency is living up to the hype—or,
secure and legitimate. In short, it’ll take more than likely, not.
a mountain of global collaboration to
make that possibility realistic. On a personal note, I wanted to thank all of
2. The thought that cryptocurrency will you for being part of this collective
enable faster payments is equally community bank journey; we couldn’t do it
troubling. Instant payments platforms without you. Have a wonderful Thanksgiving
are already available in the U.S.—you holiday, and please take time to celebrate
can’t get much faster than that. all you do for your communities. I know
3. The concept of a payments system they are, as are we, grateful for you.
that’s completely anonymous and
frictionless is another point of
contention. That anonymity easily can
lead (and has led) to illicit payments, so

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.

A RKANSAS | 27 | Fall 2023
COMMUNITY BANKER