E-wallet service provider Paxum has been forced by its banking partners (specific banks have not been disclosed) into ceasing collaboration with any companies using the digital currency Bitcoin. The Bitcoin service uses peer to peer technology and digital currency to enable immediate payments “to anyone, anywhere in the world” with no central authority.
Being a decentralized virtual currency and therefore relatively uncontrolled, Paxum’s banking partners came to the decision that, despite no evidence of any fraudulent transactions, doing business with the virtual currency carried too much potential risk. Paxum never used the virtual currency itself but it did allow Bitcoin to use its service as a payout option. For more on this story see AVN.
Whitepapers
Related reading
Central banks best suited to issue digital currencies
By Aaran Fronda A recent report by the Official Monetary and Financial Institutions Forum (OMFIF) said that central banks rather than private ... read more
Instant payments: innovations inbound for corporates
In 2020, instant payments look set to continue their current trajectory to become the biggest trend in payments. While these schemes already offer numerous benefits to corporates, leveraging innovations such as APIs and request to pay will go some way to unlocking their full potential, argues Michael Knetsch
Obstacles exist for banks to meet ECB’s instant payments goal
The cost of joining instant payment platforms will be one of many hurdles banks and payment services providers must overcome to meet ... read more
Banks must be aware of “biases” in data used to train ML models
Financial institutions need to be conscious of biases in the historical data that is being used to train machine learning (ML) models, ... read more