What Credit Unions Can Learn From Blockchain City

Posted by Julie Esser on May 1, 2019 9:30:00 AM

What Credit Unions Can Learn From Blockchain City

In February 2019, the documentary, Blockchain City, debuted during the World Government Summit in Dubai. The informative and forward-leaning film, sponsored by CULedger, captures the unfolding impact of blockchain technology on governments as well as the private and public sectors.

“In the next decade or so, a majority of progressive large and small cities will run on blockchain technology,” Ian Khan, director and host of Blockchain City, said in the film. “Today more than ever we need to understand the impact of technology in a simple, concise and clear manner, steering away from hype. This is the only way we can bring business leaders together to work on a common mission of positive change.”Why is CULedger so involved in the Blockchain Movement?

There are numerous responses to this frequently asked question, but it boils down to relevancy. Take, for example, New York and San Francisco. These two American cities have adopted blockchain in different capacities. The former is home to the Brooklyn-based ConsenSys. With more than a thousand employees, the company supports scalable blockchain startups. And, New York is also now home to the recently opened Blockchain Resource Center, which serves as a unique resource to blockchain industry professionals.

The reason leading international cities are supporting blockchain technology is because these communities understand that its respective residential consumer base are connecting more and more to goods and services digitally. Credit union executives, therefore, should be considering how they can be relevant within this changing municipality construct.

Don’t Stand on the Sidelines

Over the last year, there has been a noticeable shift in how credit unions are approaching the concept of blockchain. Whereas discussions were focused on explaining the differences between blockchain and bitcoin, now credit union executives are inquiring how these solutions can be deployed in their credit union.

Not all credit union executives are standing on the sideline watching, rather, there are proactive credit unions exploring blockchain possibilities in various pilot programs.

One way credit unions are getting involved with the blockchain movement is by using self-sovereign identity, or SSI, to proactively manage regulatory requirements. Since every interaction a member has with their credit union begins by confirming the member’s identity, credit unions are leveraging SSI-based platforms, such as CULedger’s MyCUID, to adhere to Know Your Customer (KYC) requirements while streamlining the member authentication experience.

But, the main benefit blockchain gives to credit unions is by enabling an incorruptible, shared financial services network. This network of digital exchange allows members to conduct safe and secure transactions among any credit union on the network worldwide.

While certain people may think blockchain is merely a trending issue, credit unions are recognizing that it’s not. The norms of the financial services industry, including the way data is shared and how members are authenticated, are changing at a rapid rate. Organizational leaders that aren’t investigating blockchain technologies will be left behind.

For more information, check out the the Blockchain City website here.

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Topics: Blockchain