“Pig butchering” scams — in which victims invest increasing sums in supposedly legitimate virtual currency enterprises before being conned out of their money — depend on cryptocurrencies to function. But the connections between crypto and this skyrocketing scam run much deeper than the fake investments that ensnare consumers.

A new form of investment scam has skyrocketed in recent years as criminal syndicates target consumers through online channels. Called “pig butchering,” this new scam is increasingly relevant, including among the consumers and communities that community banks serve.

What is the true nature of cryptoassets? Are they securities or commodities? This question, perhaps more than any other, has propelled policy debates over the past few years.

The significant upheaval in the crypto markets—and its impact on consumers and national security—has accelerated Washington’s attention to digital assets policy. Prudential banking regulators, the White House, and the Treasury Department have pursued a range of intertwining policy initiatives, all with direct consequences for the nation’s community banks.

Remaining aware of developments in the digital assets industry is critical as crypto entities seek greater access to the traditional financial system and policymakers in Congress deliberate paths forward.

In 2022, ICBA and community bankers stood together against a steady stream of efforts to impose harmful policies while working tirelessly to advance initiatives benefiting local communities—proving once again the importance of making our voice heard in the nation’s capital.

Everyone, including big tech and social media players, want a super app. That’s according to a 2022 Accenture Banking report, which underscores that the threat is real.

The collapse of the TerraUSD stablecoin has significantly affected the crypto sector and broader financial markets. But perhaps even more important for community banks, the market instability is fueling the policymaker push for a regulatory structure to address crypto’s risks.

While the collapse of the TerraUSD stablecoin has captured the most attention and headlines, it was not the only stablecoin to fail during the market downturn. Here’s a look at the impact of the Terra decline on the stablecoin sector and what’s next for the crypto markets.

ICBA has closely watched the growth of stablecoins over the past year and repeatedly raised concerns about the risks these systems may pose to consumers and the wider financial system. Earlier this month, those concerns manifested with the collapse of TerraUSD, once the third-largest stablecoin.

Consumers and businesses are increasingly using payment platforms that allow them to pay or transfer money faster than ever before, with U.S. faster payments transactions topping $900 billion in 2020.

The importance of experienced advocacy representation of community banks’ payments needs has never been greater, which is why the ICBA Payments and Technology Policy team has imbedded resources into myriad decision-making boards, committees, and standards-setting bodies.

Officials in Washington have in recent months increased their focus on overdraft programs and policies. With community banks already subject to strict overdraft regulations and offering overdraft services designed to meet the demands of their customers, ICBA and community bankers are fully engaged in the debate.

The Federal Reserve Board recently released its long-anticipated report on how the U.S. might advance towards an “age of digital transformation” with a future central bank digital currency (CBDC).

Smart contracts — blockchain-based programs that operate when predetermined conditions are met — offer potential use cases as well as risks for community banks evaluating their payments processing capabilities

Smart contracts — computer programs that automatically execute specific actions — are becoming increasingly relevant to community banks. Here’s a breakdown of smart contracts and how they could ultimately serve community banks.

While policy and technology questions continue to be debated around the digital dollar, the vital role that community banks need to play in this next evolution of money is indisputable.

With the recent stablecoin surge raising risks for consumers and the financial system, regulators and Congress are increasingly concerned about the risks these digital currencies pose to consumers and the overall stability of financial markets.

While policy and technology questions continue to be debated around the digital dollar, the vital role that community banks need to play in this next evolution of money is indisputable.

For $3.1 billion-asset Blue Ridge Bank, innovation is priority number one. Yet in a recent interview, the Luray, Va.-based community bank quickly pointed out that innovation is not as much about the technology investment as it is about the cultural one.