The Future of Banking With Bitcoins

Author: BankFeeInsider.com     Thursday, December 12, 2013 12:00 AM

According to a recent piece on USAToday, Bitcoins are becoming an international craze. Some banking institutions have banned the use of Bitcoins, stating that they are too risky, while others are embracing the new method of payment and predicting that Bitcoins will give other virtual payment processors a run for their money. As a consumer, what can you expect to see from the new Bitcoin frenzy?

Bitcoins are gaining popularity, and a small contingent of Bitcoin enthusiasts have driven the value of Bitcoins up from less than a dollar to more than $1,000. There are already several brick-and-mortar businesses that accept Bitcoins as payments, and they may be purchased using dollars, Euros and other types of international currencies. Bitcoins are convenient and easy to use.

There are a few obstacles that stand in the way of Bitcoins becoming as wide spread and popular as other types of virtual payments. First is the fear and hesitation that many financial institutions have when it comes to Bitcoins. This is a relatively new method of payment processing, having only been created in 2009 but just recently gaining popularity, so there is still a lot of uncertainty surrounding them. It is imperative to have banks and other financial instititutions on board to make Bitcoins a viable payment processing method for everyone.

There are also regulatory issues. Bitcoins will need to be monitored by government regulatory agencies, and businesses that accept this form of payment will be subjected to anti-money laundering regulations. Bitcoins are difficult to track at this time, but the United States Department of Justice has deemed them an acceptable form of payment, so the government is taking strides to get on board with tracking Bitcoin payments.

Some critics see Bitcoins as just a fad that will fall by the wayside in the future, but experts are saying that Bitcoins may be here to stay. Only time will tell, but this is definitely an issue that is exciting and something to keep a close eye on.

Source: BFI