{"id":4532,"date":"2014-05-09T15:36:00","date_gmt":"2014-05-09T15:36:00","guid":{"rendered":"https:\/\/evssolutions.com\/is-it-possible-for-financial-institutions-to-implement-virtual-currencies\/"},"modified":"2014-05-09T15:36:00","modified_gmt":"2014-05-09T15:36:00","slug":"is-it-possible-for-financial-institutions-to-implement-virtual-currencies","status":"publish","type":"post","link":"https:\/\/evssolutions.com\/insights\/is-it-possible-for-financial-institutions-to-implement-virtual-currencies\/","title":{"rendered":"Is It Possible for Financial Institutions to Implement Virtual Currencies?"},"content":{"rendered":"<p>There are a lot of questions from financial institutions on&#13;<br \/>\nwhether or not its safe to offer virtual currencies into their offerings.&#13;<br \/>\nFinancial institutions that are considering the acceptance of virtual&#13;<br \/>\ncurrencies, such as Bitcoin, and possibly integrating them into their offerings&#13;<br \/>\nneed to keep track of the latest developments and be aware of key risks,&#13;<br \/>\nincluding potential use of the currencies for money-laundering schemes. <a href=\"https:\/\/www.electronicverificationsystems.com\/products\/id-verification.aspx\">Identity&#13;<br \/>\nverification<\/a> and authentication is hard to perform on virtual currencies&#13;<br \/>\ndue to the demand of anonymity.<\/p>\n<p>Eventually, if banks decide to accept virtual currencies they&#13;<br \/>\nwill need to develop payments strategies and tactics, even if the security&#13;<br \/>\nrisks are not yet fully understood. It will also be important for banks to&#13;<br \/>\ndetermine the current value of virtual currencies, which is challenging because&#13;<br \/>\ntheir value is fluid. The fluidity in value will certainly raise even more&#13;<br \/>\nquestions around money-laundering risks.<\/p>\n<p>Financial institutions need to consider the fact that&#13;<br \/>\nvirtual currencies can be stolen, and investors have to rely upon the strength&#13;<br \/>\nof their own security systems, as well as third party <a href=\"https:\/\/www.electronicverificationsystems.com\/solutions\/\">fraud prevention&#13;<br \/>\nsolutions<\/a>, to protect them from fraudulent activity. Not to mention, on&#13;<br \/>\nmany virtual currency ATMs they ask for a large amount of personal information,&#13;<br \/>\nwhich is especially troubling. Deciding what exactly the ATM will store, including&#13;<br \/>\npersonal information and palm print, needs to be determined across the board.&#13;<br \/>\nIf compromised, customers could lose their phone number, email, palm print and&#13;<br \/>\nall the data from their government issued ID, which puts the institution at&#13;<br \/>\nrisk as well.<\/p>\n<p>As banking regulators around the world begin to move toward&#13;<br \/>\nregulating virtual currencies, including verifying the identities of customers,&#13;<br \/>\nsome Bitcoin proponents are working harder to make sure users remain anonymous.&#13;<br \/>\nThe further encryption of virtual currencies could make it more difficult to&#13;<br \/>\ntrace the flow of money online, which could help bolster criminal activity. <\/p>\n<\/p>\n<p>[Contributed by EVS Marketing]<\/p>\n<p><!--EndFragment--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are a lot of questions from financial institutions on whether or not its safe to offer virtual currencies into their offerings. Financial institutions that are considering the acceptance of virtual currencies, such as Bitcoin, and possibly integrating them into<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4532"}],"collection":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/comments?post=4532"}],"version-history":[{"count":0,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4532\/revisions"}],"wp:attachment":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/media?parent=4532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/categories?post=4532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/tags?post=4532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}