HSBC Starts Thinking About Virtual Cash

by Mercator Advisory Group 0

From Mobile Payments Today:

Virtual currency — “money” earned online or purchased with legal tender for use in online environments — is gaining popularity. And banking giant HSBC is looking for a way to bring it into the banking environment.

“We have a planning assumption that virtual currencies will become mainstream in three to five years,” Andrew Davis, global head of e-channels and strategy at HSBC said in an article by Australia’s Financial Review. “How people place value on things won’t just be with hard currency in the future and we’re already seeing micro-currencies emerge around the world.”

While virtual cash may be several years away for even the most forward-thinking financial institutions, they would be wise to evaluate possible scenarios that may emerge over time. As products like mobile wallets begin to gain traction, virtual currency and e-currency may not be far behind.

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