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Author Topic: Is a bitcoin credit union feasible ?  (Read 1279 times)
Bitcoin Oz
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July 11, 2012, 03:36:20 AM
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http://www.bankrate.com/brm/news/cu/20000301a.asp this describes the process in the US at least of founding one and it requires a board who have good credit ratings and who havent been bankrupt etc.

The idea came to me that you cant walk into a traditional credit union or bank and use your bitcoins (or assets held at glbse) as collateral on a USD loan.

In Australia you can start a community bank if enough people pledge to move their home loans and other accounts to it when it opens,so if enough people got together and did things like move their home loan and other USD business to this entity it might have a shot at being successful.

It could offer such things as secure bank vault for your thumb drives holding a wallet.dat and be insured against physical attack.

Is this feasible at this point in time ? Perhaps its first branch could be in New Hampshire ?

Quote
As a rule, a "yes" vote by 500 potential members warrants continuation of the process to form a credit union. The National Credit Union Administration requires that a credit union with fewer than 3,000 potential members provide more evidence of support, since only about one-third of potential members will join and credit unions with less than 3,000 members may not be economically justified. Survey your potential members to determine whether they have an interest in supporting a credit union.

tldr; As this rolled out branches it could provide space for bitcoin atms

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benjamindees
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July 11, 2012, 08:04:45 PM
 #2

I imagine it would be difficult for a regulated US credit union to hold non-dollar deposits.

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July 11, 2012, 09:27:33 PM
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This is very feasible.  Right now I'm invested in the Gamma fund which has about $70K worth of bitcoins.  The Gamma fund operators are loaning out money (with interest).  This is sort of like a bitcoin credit union.

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Bitcoin Oz
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July 12, 2012, 12:06:19 AM
 #4

This is very feasible.  Right now I'm invested in the Gamma fund which has about $70K worth of bitcoins.  The Gamma fund operators are loaning out money (with interest).  This is sort of like a bitcoin credit union.

Do they loan out USD or bitcoin ?

The idea is that bitcoin is equity like the equity in your house. You can get a home equity loan so why not a bitcoin equity loan ?


Bitcoin Oz
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July 12, 2012, 12:09:15 AM
 #5

I imagine it would be difficult for a regulated US credit union to hold non-dollar deposits.

Cant you stick gold in locked boxes with the bank ? The idea is that the bitcoin is collateral not a deposit.

You dont earn interest on the coins you use them like a lump of gold or any valuable asset. Perhaps this business model is closer to a pawnbroker Smiley

benjamindees
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July 12, 2012, 03:08:23 AM
 #6

Unless you want to try to convince the FED to lend against Bitcoins, sounds more like a pawnbroker or private bank.

Sounds like a good idea though.  But difficult.  Most credit unions won't even lend against unimproved property.  And most banks won't even accept gold as collateral.  You'd need to attract a lot of dollar deposits to make it work.

Somebody in London, call up J.P. Morgan Worldwide Securities Services and ask if they accept Bitcoin as collateral.

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BadBitcoin (James Sutton)
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July 12, 2012, 03:49:55 AM
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we were talking about this in the donators section a few weeks back, nothing really came of it, however I think there is interest in forming one with some of the big lenders.

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Bitcoin Oz
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July 12, 2012, 03:55:38 AM
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Unless you want to try to convince the FED to lend against Bitcoins, sounds more like a pawnbroker or private bank.

Sounds like a good idea though.  But difficult.  Most credit unions won't even lend against unimproved property.  And most banks won't even accept gold as collateral.  You'd need to attract a lot of dollar deposits to make it work.

Somebody in London, call up J.P. Morgan Worldwide Securities Services and ask if they accept Bitcoin as collateral.

Point taken Smiley

Yes I realise now its closer to a pawnbroker or private bank than anything else. I imagine its a lot easier to get one of those licenses than a banking one with such entrenched opposition.

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July 12, 2012, 03:56:59 AM
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we were talking about this in the donators section a few weeks back, nothing really came of it, however I think there is interest in forming one with some of the big lenders.

Thats a natural fit with this idea and you dont need bank branches for it. I bet CPA would even insure such a thing.

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July 12, 2012, 05:07:52 AM
 #10

http://www.treasury.gov/about/organizational-structure/offices/Documents/Jan2001CreditUnionReport.pdf

Actually it seems credit unions can make business loans against almost any type of collateral but it is limited to 12.5% of their total.  One of the most common collateral types is taxi medallions.

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Bitcoin Oz
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July 12, 2012, 07:20:39 AM
 #11

http://www.treasury.gov/about/organizational-structure/offices/Documents/Jan2001CreditUnionReport.pdf

Actually it seems credit unions can make business loans against almost any type of collateral but it is limited to 12.5% of their total.  One of the most common collateral types is taxi medallions.

Thats a good start  Smiley

btw taxi medallions are a license to print money.

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July 14, 2012, 09:47:30 PM
 #12

I contacted "The Lawful Bank" - http://lawfulbank.com/Welcome - a kind of national credit union trying to start in the UK (credit unions are a bit different in the UK from the US) and they seemed interested in accepting bitcoin deposits.

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July 14, 2012, 10:09:25 PM
 #13

I think it is yes!
Jonathan Ryan Owens
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July 14, 2012, 10:22:11 PM
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http://en.wikipedia.org/wiki/National_Credit_Union_Administration#Mycreditunion.gov

http://www.ncua.gov/Legal/Documents/Reports/IAG201203.pdf


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