The digital currency environment is a space that traditional financial institutions should watch in order to stay competitive. There is much to gain from understanding and staying ahead of digital currency trends, including cryptocurrencies. As they navigate this new digital currency landscape, bankers should consider customer demands and how to best position themselves for success. What is a Cryptocurrency? Cryptocurrencies are digital or virtual currencies protected by encryption, making counterfeiting and double-spending practically impossible. Many cryptocurrencies use blockchain technology, a distributed ledger enforced by a network of computers. In short, cryptocurrencies leverage advanced mathematical formulas to create digital assets. The value of these digital assets ebbs and flows, much like traditional currencies or stocks. Sophisticated cryptography prevents counterfeiting and fraudulent transactions. Cryptocurrencies have also become more popular in recent years. TIME reported the world’s cryptocurrency as worth more than $3 trillion globally, and consumers transact trillions of dollars in value each year. While there has been much debate over the true “value” of cryptocurrencies, these digital assets have undoubtedly DIVING INTO DIGITAL CURRENCY: What You Need to Know About Crypto By Matt Herren, Director of Payment Strategy, CSI 26 | The Show-Me Banker Magazine
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