(Sept. 10, 2021) NCUA’s request for information (RFI) on digital assets and related technologies is the latest summary posted on the association’s website; comments are due Sept. 27.
Like all NASCUS summaries, it is available to members only.
In July, the NCUA issued the RFI, with a particular eye on current and potential uses for credit unions and the risks associated with them. NCUA said the effort is to engage the credit union system and other stakeholders in learning how emerging distributed ledger technology (DLT) and decentralized finance (DeFi) applications are viewed and used. In particular, the agency said, it wants feedback on the role NCUA can play in “safeguarding the financial system and consumers in the context of these emerging technologies.”
The agency described DeFi as the broad category of applications adopting peer-to-peer networks to create digital assets like cryptocurrency and crypto-assets, clearing and settlement systems, identity management systems, and record retention systems. DLT (which includes blockchains) consists of a shared electronic database where copies of the same information are stored on a distributed network of computers.