The President’s Perspective

​Is CBDC a game change for credit unions? Plus, Stack the PAC social to launch Summit; and ND is getting closer to achieving the CU4Kids Micro Preemie Care Unit objective. 

What is CBDC and how it would be a game changer for credit unions.
Perhaps you have heard chatter about a centralized bank digital currency type system, either on national news or in trade publications, podcasts, or social media. Some are speculating that this is where our financial service sector is heading. Today, China is at the forefront of this type of transaction system and operates a central bank digital currency which is known as the digital yuan, and everyone is closely watching their progress. All told, there are 11 other countries that currently operate under a central bank digital currency system.

However, as member owned financial cooperatives, a central bank digital currency could negatively impact our institutions and perhaps pose broader financial security risks for our member owners.

Yesterday, both the House and Senate introduced legislation that would bar the Fed from issuing CBDC (S.3801/H.R. 5403). If the Federal Reserve were to offer a CBDC directly to consumers, it would then be in the business of offering consumer accounts. This action would constitute a massive expansion of its mission and thus threaten the entire financial system as we know it. This would most certainly distract from the Federal Reserves’ dual mandate of achieving stable prices and maximizing stable markets and the economy. Stay tuned.

North Dakota approaches CU4Kids Micro Preemie Care Unit campaign objective!
As you know, the DakCU team, along with the support of our Foundation, has been focused on helping Sanford Children’s Hospital in Fargo in a capital campaign supporting a proposed CU4Kids Micro Preemie Care Unit. I am so proud and impressed to report that 15 North Dakota Credit Unions have joined us and a total of $383,000 has been pledged so far.

We are close to finalizing this campaign as a North Dakota credit union only project, but we are still short of where we need to be at this point and are hoping to get to the $500K “ask” to have this project named exclusively for credit unions. This unit will benefit the entire state of North Dakota with our 53 counties, as well as several counties in northwest Minnesota. 

We are asking each North Dakota credit union to consider making a pledge for any amount, which can begin whenever its convenient for each respective credit union. Every dollar is impactful and helps us get closer to our goal.

Our sincere hope is that working together, we can create a lasting credit union legacy that future generations will see and appreciate at the only Children’s Miracle Network Hospital in North Dakota. Please consider a pledge to help us reach our campaign goal. Most importantly, your support can help to ensure the tiniest of miracles in our communities receive the very best of care near home. Please check out the related story in today’s Memo for additional information, including a complete list of all contributing credit unions. Feel free to contact Shawn Brummer on our staff or Hillery Mork at Sanford Health Foundation with any questions.

Stack the PAC Event to “kick off” the 2024 Summit!
We are now just a short 28 days from our 18th Annual Summit. This year, our conference setting will be especially grand! That’s because we will be at the Grand Falls Casino and Resort just southeast of Sioux Falls. Once again, the DakCU team has put together a terrific event. The good news is that you still can register and join us, but don’t wait too long as spots are filling up.

New this year, we are launching the Summit with our first ever “Stack the PAC” invitation-only event on Tuesday, May 14, which will be a combination social, recognition and fundraising awareness opportunity for CUPAC. As a reminder, CUPAC is the Credit Union Political Action Committee for state candidates. North and South Dakota each operate separate PACs which are governed by their respective Governmental Affairs Committees. The purpose of CUPAC is to provide opportunities for individuals interested in the future of the credit union movement to contribute to the support of worthy candidates for office who will advocate for and advance an environment where credit unions thrive.

At our “Stack the PAC” social, not only will we recognize and thank our supporters from last year, but we will also tee up an election outlook with Trey Hawkings, Deputy Chief Advocacy Officer for Political Action for America’s Credit Unions.

Those that contributed at the CU Advocate level ($24 annually) through one of our programs such as “payroll deduction” or made a direct contribution should have received their invitation via email. However, everyone is welcome to join us; those who did not meet the criteria in 2023 can still attend by making a donation of $24 at the door.

Dorothy Voorhees named interim CEO at Sentinel
Last week, the board of directors at Sentinel FCU (Rapid City, SD) announced that Dorothy Voorhees has been named the interim CEO upon the resignation of Keith Robbenolt. As the CFO at Sentinel for more than six years, Dorothy is well prepared to play a pivotal role in continuing to drive the credit union’s growth and success. She has also been an important part of the Dakota Credit Union Foundation, having served on the foundation’s board of directors since 2021. Congratulations, Dorothy.

Tiffany Janssen recognized as “Up-And-Comer”
Finally, congratulations to Tiffany Janssen, marketing manager at Bluestone FCU (Sioux Falls, SD) who was recently recognized by SiouxFalls.Business as an “Up-And-Comer” to watch! Tiffany shared in her interview that she came from a family that was “forever juggling bills.” Now, through her role at her credit union, she can tell the world all about credit unions and share tools that help their members save money, make money, and learn more about their money. Well done, Tiffany!

Have a great week,

DakCU President/CEO