US Organizations Have Plans For Bitcoin - Essay Example

79% US Organizations Have Plans for Digital Currencies Adoption

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Based on a new study of e-payment trends, crypto currencies are a part of the long-term strategies of most US companies.

The Ponemon Institute report, which was commissioned by HP, concluded that 79% of the companies surveyed had plans to adopt digital currencies such as bitcoin in the near future.

The study also found that 80% of the 634 United States residents who were surveyed shared that they assume crypto currencies to replace the paper currencies in the future.

The authors indicated that the participants, who were involved in IT operations, technology deployment and security, are all very involved in and familiar with their organizations’ e-payments practices.

Along with digital currencies, the report included information about emerging technologies, security, and authentication systems. It also included mobile services such as Apple Pay and Google Wallet and wireless standards like the Near Field Communication.

Generally, the report stated that the new electronic payment systems are positive and that digital currencies have the fair share of support.

Even though digital wallets have gained immense popularity, the respondents seemed concerned about the security risks involved. It is true that the biggest obstacle to Bitcoin adoption is security.

HP payments report 1 concludes that adoption of digital currencies is inevitable as both the companies and users are ready to accept them.

60% of the total respondents stated digital currencies as an important part of their company’s electronic payment system. 26% said they strongly agreed with the statement.

According to the HP payments report 2, when respondents were asked if crypto currencies will replace paper currencies, most of them answered positively.

It is expected that this change will happen within the next 5 to 10 years.

Although digital wallets project a similar trend, adoption for Bitcoin wallet is expected to happen much faster.

In was mentioned in the HP payments report 3 that support for crypto currencies is limited now. Only 14% organizations support Bitcoin and digital currencies already.

However 11% respondents plan Bitcoin integration over the next 6 months and 9% are hopeful that they will see Bitcoin integration within 12 months.

The HP payments report 4 informed that 11% thought digital currency integration is somewhat important while 6% respondents said it is not important. None of them described it to be irrelevant.

The security issues that the digital currencies still face are a big concern. The new payment models are adding new security challenges too.

Majority of the respondents said that one-time tokens or passwords might be effective approaches to tackling this problem.

Federated identity, authentication systems and the multi-factor authentication are of course very important.

When they were asked if acceptance of digital currencies would have an effect on the security and integrity of e-payments, most people said that it would lead to a decrease.

Only 2% said they expect a significant increase, 5% said they expect an increase and 10% stated that digital currency adoption would not impact security in any way.