Cody Carbone Highlights Concerns for U.S. Community Banks
Cody Carbone, the newly appointed CEO of the Digital Chamber, has raised alarms about the perilous state of U.S. community banks as they fail to embrace technological advancements like cryptocurrency and real-time payments. On the social media platform X, Carbone shared his insights on the alarming decline of community banks across the country, citing a stark reduction in numbers from nearly 10,000 in the mid-1990s to just 4,046 today. This trend, he argues, illustrates a significant lost opportunity for smaller financial institutions to innovate and secure their place in the competitive banking landscape.
“It’s unfortunate. Community banks in the U.S. have not only diminished in number but also in their ability to innovate. Instead of capitalizing on big banks’ sluggishness by developing features like crypto custody and instant payment systems, they risk becoming targets for acquisition.”
Leadership and Vision for Digital Assets
His statements resonate with growing concern within the digital asset community regarding the inertia of smaller banks in adopting essential technologies. Under Carbone’s leadership since March 2025, following the tenure of founder Perianne Boring, the Digital Chamber aims to create a supportive regulatory environment favoring blockchain and digital assets, including stablecoins.
The Digital Divide in Banking
The ongoing digitization trend among larger banking institutions contrasts sharply with the struggles of their smaller counterparts, who often lack the technological roadmap to effectively compete. Critics from the decentralized finance (DeFi) space assert that an emphasis on integrating cryptocurrencies and blockchain services could provide community banks with a vital opportunity to not only avert mergers but also revive their status as pioneers in the financial sector. Such a shift is becoming increasingly essential as the landscape of banking continues to transform rapidly.
