Independent Banker - November 2022 - 61

Where do NFTs come into
this-and what are they?
Non-fungible tokens, or NFTs, are cryptoasset-based
tokens that cannot be replicated and are hence deemed
" digitally scarce, " says Ron Quaranta, founder and
chairman of the Wall Street Blockchain Alliance in
New York City.
5
Is cryptocurrency
worth the risk for
community banks?
" There's still regulatory uncertainty, " says
Laverdure. " We don't have harmonization
on how community banks can offer
crypto. They really need clear guidance
about what is permissible and what is
not. Beyond that, community banks are
really in the best position to determine
what are the best products for their needs
and their customers' needs. It's a choice
each community bank needs to make
for itself. "
Community bankers continue to learn
and stay on top of what's new. " This is
a space that moves so quickly that it's
absolutely essential to stay on top of the
latest information, " he says.
" That's where an organization like
ICBA really shines through, " Laverdure
says. " Bankers don't have to go out
and gather all of this information
themselves-that's what ICBA is here for.
When you see communication from ICBA
about these things, take the time to read
it. That's the best way to make sense of
this rapidly moving space. "
Katie Kuehner-Hebert is a writer
in California.
independentbanker.org Q 61
" To use a comparison, in a technical sense, every bitcoin is
interchangeable for any other bitcoin, " he says. " In the NFT
world, this is not the case. Indeed, each NFT in and of itself
is a unique digital entity that leverages cryptography and
peer-to-peer capabilities to show unique digital ownership
and scarcity. "
NFTs started with digital
art, most notably the
" Board Ape Yacht Club "
collection of digital
art, as well as the
auction of an NFT by
internet-famous artist
Beeple, which sold for
$69 million at the height
of the NFT boom in early
2021, he says.
An NFT is a unique cryptoasset-based token.
They can sell for millions of dollars.
" While these digital
representations of
unique value are
important, it's worth
remembering that
NFTs also represent an evolution of cryptoassets and
blockchain technology, " Quaranta says. " The strategic NFT
discussions today focus on everything from cryptoassets
that are unique, scarce and have value applicable in
the metaverse, for example, to the use of NFTs for realworld
assets. "
For example, several projects are currently underway to
embed physical real estate, titles and deeds to blockchain
technology using NFTs. " In the future, NFTs will be a core
component of how people and organizations exchange
value across the global economic landscape, " Quaranta
says. " It's important to spend time now to understand
what NFTs mean for the future and understand how they
will impact your clients and your business. "
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Independent Banker - November 2022

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