U.S. Community Banks Face Challenges Amid Digital Transformation

According to PANews, Cody Carbone, the new CEO of the Digital Chamber, a cryptocurrency advocacy group, has raised concerns about the declining number of community banks in the United States. The number of these banks has dropped from around 10,000 in the mid-1990s to 4,046 today. Carbone highlighted on social media that these banks missed opportunities to create competitive advantages by not adopting innovative technologies such as real-time payment systems, crypto asset custody, and stablecoin channels, leading to their vulnerability to mergers and acquisitions. The Digital Chamber, a leading blockchain industry association in the U.S., is currently advocating for legislation related to stablecoins and market structure to establish a clear regulatory framework. Carbone believes that if community banks swiftly embrace blockchain technology and crypto services, they can avoid being absorbed by larger banks and regain a competitive edge in financial innovation. Analysts have noted that while major banks are gradually enhancing their digital services, small and medium-sized institutions lacking effective digital strategies are facing a survival crisis.