20 THE NAFCU JOURNAL SEPTEMBER–OCTOBER 2022 In May 2010, two large pizzas were purchased for 10,000 bitcoin. Since then, the value of bitcoin and other cryptocurrencies has exploded, and one bitcoin would buy thousands of pizzas.1 As consumers’ knowledge and understanding of digital currency grows, financial institutions have explored ways to offer access to the asset without the risk and volatility associated with the initial exchanges. In December 2021, the National Credit Union Administration (NCUA) gave federally-insured credit unions the green light to partner with third-party digital asset providers to buy, sell and hold digital assets with the third-party outside the credit union. Visions Federal Credit Union began a partnership with NYDIG to offer access to bitcoin investment to its members in January 2022, taking time to plan the introduction. A strategic roadmap that included development of educational materials for members and employees to create awareness and understanding, as well as creation of the branded tool, led up to a launch in June 2022. Offering access to bitcoin investment benefits members as well as the credit union, said Cynthia Schroeder, senior vice president of digital assets at Visions. “We are showing our members that we are innovators, and we offer them a chance to learn more about digital currency,” she said. “They can easily move money from their credit union account to a bitcoin account through their online and mobile app.” There has been obvious interest from members. In the first few weeks after introducing the product, Visions had 1,100 members sign up for a virtual wallet. “This is an opportunity to increase engagement with members because research shows that people check their digital account balances multiple times each day, which means they see our brand and our messages more,” said Schroeder. Another positive for the credit union is the fact that money transferred from the checking or savings account to the bitcoin investment account comes back to the credit union when the member sells the asset. “Previously, a member would withdraw funds to purchase bitcoin on another exchange, and those funds might not come back to Visions.” “It’s important for us to offer members access to cryptocurrency and to offer a better risk-based choice versus other cryptocurrency exchanges,” said Joe Keller, vice president of digital assets at Visions. “We provide a better controlled environment, a closed loop system, that minimizes the risks for hacks and eliminates the risk of scams.” “ It’s important for us to offer members access to cryptocurrency and to offer a better risk-based choice versus other cryptocurrency exchanges. We provide a better controlled environment that minimizes the risks for hacks and eliminates the risk of scams. ” JOE KELLER, VICE PRESIDENT OF DIGITAL ASSETS, VISIONS FEDERAL CREDIT UNION
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