Welcome To
The Bottom Line

SRM Perspectives on Key Industry Trends

Larry Pruss

Recent Posts

White House Provides More Clarity on Digital Assets

Posted by Larry Pruss on Sep 27, 2022 12:27:26 PM

CBDC-Blog-Image

We're beginning to get some clarity from the White House regarding its approach to digital assets, including the potential development of a Central Bank Digital Currency (CBDC).

With the release of a wide-ranging report, the White House appears to be embracing digital assets and their potential for transparent, cost-efficient, and inclusive financial services. A background press call provided even more insight into the Biden Administration's thinking.

Read More

Topics: Payments, Cryptocurrency, Digital Assets, CBDC, Blockchain, Regulation, Digital Ledger Technology

Education and Trust Matter When Dealing with Digital Assets

Posted by Larry Pruss on Sep 19, 2022 11:24:00 AM

Treasury-Response-Blog-Image[86]

The Biden Administration's March executive order seeking information on digital assets' usage and security set a flurry of activity into motion. This included a mandate for the Treasury Department to deliver a report on the future of money and payments systems. The agency issued a public request for comment in July, and SRM quickly responded, drawing from our detailed and ongoing coverage of cryptocurrency and other digital assets.

You can read our complete submission here; however, the condensed version below highlights the key points we believe every financial institution should consider as policies toward digital assets take shape.    

Read More

Topics: Payments, Cryptocurrency, Digital Assets, Stablecoins, Blockchain, Regulation, Digital Ledger Technology

Are Concerns of Crypto Regulation Overblown?

Posted by Larry Pruss on Apr 6, 2022 2:57:17 PM

Crypto-Regulation-Blog-Image

The Biden Administration’s Executive Order for digital assets observed that one in six adult Americans are involved with cryptocurrency, while other surveys place this figure closer to one in three. At the same time, a solid majority of Americans indicate they’d prefer to conduct crypto dealings through their financial institution.

This seems like a dream scenario for banks and credit unions looking for opportunities to deepen client relationships and pursue new sources of fee income to replace the overdraft/NSF revenue and interchange that is increasingly under threat.

Read More

Topics: Cryptocurrency, Regulations, Cryptocurrency for Banks and Credit Unions, Digital Assets, cryptocurrency consultants

Crypto’s Resiliency Spurs Interest from Financial Institutions

Posted by Larry Pruss on Mar 16, 2022 9:30:00 AM

Crypto-WP-Blog-Image[94]

Standing-room-only crowds during breakout sessions at recent industry conferences nationwide are a strong indicator of financial institutions’ growing interest in cryptocurrency and other digital assets.

Read More

Topics: Vendor Contract Negotiation, Cryptocurrency, Bank Vendor Management, Credit Union Vendor Management, Digital Assets, Blockchain

Executive Order Cements Crypto's Role in Mainstream Banking

Posted by Larry Pruss on Mar 9, 2022 3:45:20 PM

Crypto-Executive-Order-Blog-Image

The Biden Administration issued its anticipated executive order seeking to coordinate efforts among federal agencies to craft a national policy for digital assets.

While some pundits are worried about the impact of regulation, we assert that this effort brings digital assets, including cryptocurrency, into the mainstream, which should be a positive for financial institutions looking to operate in the space. 

Read More

Topics: Vendor Contract Negotiation, Cryptocurrency, Bank Vendor Management, Credit Union Vendor Management, Cryptocurrency for Banks and Credit Unions, Digital Assets, Blockchain

Volatility Shouldn’t Derail Your Crypto Strategy

Posted by Larry Pruss on Feb 22, 2022 9:30:00 AM

Crypto-Blog-Image[57]

Volatility tends to be a two-way street, so the recent price correction in Bitcoin and other cryptocurrencies shouldn’t come as a shock. Still, that doesn’t take the sting out of the size and speed of the recent decline in Bitcoin, which lost more than half its value between mid-November and late January.

Read More

Topics: Vendor Contract Negotiation, Cryptocurrency, Bitcoin, Bank Vendor Management, Credit Union Vendor Management, Digital Assets

Stablecoins Could Enter the Mainstream in 2022

Posted by Larry Pruss on Jan 10, 2022 9:30:00 AM

Stablecoins_Blog_Image[20]

Most of the excitement surrounding cryptocurrency has focused on Bitcoin and similar altcoins. This is understandable, as this asset class accounts for over 95% of the market value assigned to digital currencies and has been responsible for eye-popping returns in recent years.

Read More

Topics: Vendor Contract Negotiation, Cryptocurrency, Bank Vendor Management, Credit Union Vendor Management, DeFi, Stablecoins, CBDC

Credit Unions and Crypto: Setting the Ground Rules

Posted by Larry Pruss on Oct 11, 2021 9:30:00 AM

NCUA-Comment-Blog-Image[62]

In late July, the National Credit Union Administration (NCUA) issued a request for comment on the current uses of digital assets and their potential impact on the financial system. The NCUA plans to use this input to help shape its role in safeguarding consumers and the system as these emerging technologies evolve.

The request largely mirrors previous outreach by bank regulators, although the NCUA expanded its scope to include the rapidly growing field of decentralized finance (DeFi). Unfortunately, the credit union response has been muted, so the NCUA extended its deadline for comments to October 27. SRM encourages credit unions to make their voices heard on this strategically important issue.

SRM responded to the NCUA, which you can read here. Our NCUA letter serves as a solid primer on the cryptocurrency topic and includes several examples of existing banking initiatives, the highlights of which we’ll summarize below.

Read More

Topics: Cryptocurrency, DeFi, Decentralized Finance, Digital Asset Regulation, Cryptocurrency for Banks and Credit Unions

Despite Crypto’s Correction, No Change to Fundamentals

Posted by Larry Pruss on Jul 8, 2021 10:00:00 AM

CryptoCorrection_BlogImage[90]

Bitcoin has lost half of its value since reaching an all-time high mid-April. Although one might think this setback would cast a pall over a gathering of cryptocurrency enthusiasts, the overall tone of Coindesk’s Consensus conference in late May remained constructive and upbeat.

For those keeping their eyes on the prize, these two paths are not contradictory. Crypto’s long term value proposition hinges on its adoption as a means of exchange, not its volatile pricing as a speculative asset class. And there’s no sign of slowing down among large financial institutions and scrappy entrepreneurs creating trading and custody platforms and expanding payment capabilities for digital coins. These are the areas where banks and credit unions of all sizes need to take note.

Read More

Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Defining Decentralized Finance (DeFi) | What It Means for the Future of Banking

Posted by Larry Pruss on Jun 15, 2021 9:30:00 AM

DeFi_Blog_01-1

Traditional financial institutions are facing a new wave of crypto-enabled payments disruptions, and many don’t see it coming. Even so, lending as we know it is about to change.

In a recent post, I stressed the importance of banks and credit unions preparing for rapidly emerging financial technologies like CBDCs (central bank digital currencies) and DeFi. This post will take a closer look at what DeFi means for banking as we know it, and encompasses borrowing, lending, investing, payments, and digital wallets.

Read More

Topics: Fintech Vendor Selection, Decentralized Finance, Lending Consulting

Content not found

Subscribe to our blog

Recent Posts

Posts by Topic

see all