Looking For Potential Investors : Bitcoin Credit Union

[semyazza]

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Hello,
BiddingPond is looking for potential investors to open a Bitcoin credit union.  At the beginning stages we will be operating as a Basic Service credit union. A basic service credit union generally offers basic products, such as regular share accounts and small consumer loans.  Regular share accounts include savings, vacation clubs, holiday clubs, etc.  The small consumer loans include personal (signature), new and used automobile, home improvement, educational, and debt consolidation type loans.  We will also be offering other services as we mature to the Bitcoin community and eventually apply to become a full service credit union.

Currently the estimated costs to start up according to NCUA (National Credit Union Administration) would be: $127,000 USD.  We would like 150% of that amount to allow for a larger operational buffer.  This credit union would be federally chartered in the United States and follow all applicable rules and regulations.

If you are interested in more information as this progresses and would like to join the organization committee please send an e-mail to.

bitcoincreditunion@semyazza.com

More information will be posted here as it becomes available.  Online meetings will also be held with potential investors in the near future,

Regards,
BiddingPond.com Team
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[semyazza]

Pre-Charter Costs:



Post-Charter Costs:

[semyazza]

RESERVED FOR MORE INFORMATION

[nhodges]

Will the nature of the credit union be as transparent as Bitcoin? Will your documents and records be available for the public to review?

I'm VERY interested in seeing the developments on this, it seems you've done your homework, at the very least.

[semyazza]

Will the nature of the credit union be as transparent as Bitcoin? Will your documents and records be available for the public to review?

I'm VERY interested in seeing the developments on this, it seems you've done your homework, at the very least.

Yes, we will allow publicly accessible records and would also apply for 501(c) status from the IRS.  We are doing this to strengthen the Bitcoin economy and provide convenient digital options.  Our accounts will also be audited as is required by NCUA and other federal laws and have deposit insurance of $250,000.

[Philj]

What is the minimum you would accept for an investment? And would you accept bitcoins as the initial investment?

[semyazza]

What is the minimum you would accept for an investment? And would you accept bitcoins as the initial investment?

At this time any amount would be considered as interest is being gauged.  We are currently seeing what type of funding options we have that is acceptable legally for operation costs.  We do know that loans and grants would be allowed on the credit unions end for funding but, we will entertain more options if NCUA will allow it.  Also, bitcoins would gladly be accepted.

We would also like to add that we see this as a necessary step for the legitimacy of Bitcoins among the general non-tech savvy populace.  As stated earlier this would be a 501(c) company after IRS approval and would be a member run organization.  Being a federally charted financial institution would also allow for some amazing things that would not be possible for an ordinary company.

Let us imagine:
Credit cards that hold a BTC balance and can be used for multi-currency transactions at a POS.
Ability to withdraw funds from an ATM from your savings/checking account in BTC/USD/EUR/etc.
Federally insured Deposits.
Merchant processing from a trusted audited source
Ability to get a mortgage/car loan in Bitcoins/other currency.
Account auditing from a trusted third party.
Other Ideas that I'm sure this great community can think of!

Now lets make that a reality!

[carbonpenguin]

I'm a professional credit union historian, so if you're serious about doing this, we should skype in the near future. I would very much like to see a bitcoin credit union, but there are a fair number of subtle dynamics that you should be aware of...

[speeder]

I want to join that!

I am the second biggest shareholder of the other failed bitcoin credit union.

I do not have time to code a credit union myself, but I have some money, and I will be happy to throw it on your venture.

[Anth0n]

Will you be offering stock on GLBSE?

[lemonginger]

I would be very interested in a BTC credit union - especially if it was philosophically aligned with the community/collective aspects of credit unions. I think it would have to be started by people who have experience in both the financial and credit union industry though, at I'm guessing that $70k for annual expenses is quite on the low side.

[semyazza]

I'm a professional credit union historian, so if you're serious about doing this, we should skype in the near future. I would very much like to see a bitcoin credit union, but there are a fair number of subtle dynamics that you should be aware of...

We would be very interested in this.  Please contact us and we can set up a time.

[semyazza]

I would be very interested in a BTC credit union - especially if it was philosophically aligned with the community/collective aspects of credit unions. I think it would have to be started by people who have experience in both the financial and credit union industry though, at I'm guessing that $70k for annual expenses is quite on the low side.

The belief of the community/collective aspect of credit unions was the reason we chose this type of institution to pursue instead of a bank.  The $70k mark is a recommendation of start up costs from NCUA (National Credit Union Administration).  We feel we can get that even lower if we stay with the community/collective approach with volunteers and the CEO being the only paid employee(at start) with everyone being volunteers (including the directors who vote in the management positions).  We are not out to make money on this venture and truly believe it is in the best interest of the Bitcoin community.  By strengthening the community we all benefit.  Bitcoin businesses gain a stable,trustworthy, economic partner, Bitcoin owners gain through increased Bitcoin value, and public adoption increases due to perceived legitimacy of business through government chartering.  There are also many other benefits and to enumerate them all would be very time extensive.  A wiki will be set up in the near future for collaboration.

[lemonginger]

awesome! I look forward to seeing the project develop and volunteering time or money to make it happen

[jago25_98]

Any news?

I found this thread and to be honest the costs in the USA shocked me; it's only ~14x cheaper than a full banking license abroad. But it's great to see them clearly listed.

Before I read this I started thinking, 'What is the shortest path to achieve a Bitcoin to cash card?' Sure there are cards like AxrumExchange[sp?] that provide this. That's great but there are fees all round, especially the ~$3 charge to withdraw, which personally puts me off enough to instead use a normal debit card, thus losing some of Bitcoins advantage.

So, what if there was a credit union that automatically converted Bitcoins(or gold?) to a cache of fiat that can be withdrawn, if the currency collapses you only lose the fiat cache. This credit union could be a cooperative and a credit union could do a lot to handle the current banking system.

So then I thought, what are the minimum overheads for a 'bank' or credit union. Let's start with a Bitcoin only 'Bank'. We have examples of this, like Flexcoin, they'll be able to tell us more about costs but generally it should be very low cost. So practically no cost there thanks to Bitcoin.

Business banking. There's going to be costs here, but I can't see much detail here on that. I'd like to know more.
Company(?) accounts, registration fees etc, but again, these shouldn't be massive.

Looking at the costs clearly it's all very realistic and that's good to see. But I wonder, what about a barebones alternative at first and then building things up from there? Could there be an alternative way of approaching the idea? Perhaps something fully international (to mesh with bitcoin) for example, (incorporated) in Panama with bank services elsewhere, run as a cooperative (does that fit with incorporation?) and supplying cash cards with anonyminity.

Also, could, indeed should, Bitcoin be used to mesh all the existing credit unions across the world together too?

edit:
The read mentioned earlier
http://thatcreditunionblog.wordpress.com/2007/04/09/starting-a-credit-union-from-scratch-what-would-it-look-like/

Also, I'd like to see a credit union that does not deal in debt and backs all assets as hardly as possible. There is no bank that doesn't hold your money fully so there's a gap in the market for this.

[GamingG]

Also, I'd like to see a credit union that does not deal in debt and backs all assets as hardly as possible. There is no bank that doesn't hold your money fully so there's a gap in the market for this.

Then how do you intend for the credit union to be funded?

[tinman951]

Isn't this going against everything bitcoin was established for (no centralized bitcoin government)?

Even so, I would be interested in investing in this.  Especially since the NCUA is like having FDIC insurance.

[rebel]

Any news on this one?

[jbest]

bump?

[CoinsForTech]

bump?

Reply before yours was over 3 years ago. Wouldn't hold your breath for a response