Payments Innovation Alliance Releases New Report Demystifying Cryptocurrency and Digital Payments

Nacha's Payments Innovation Alliance, a membership program bringing together diverse global stakeholders seeking to transform the payments industry, has published Diving into the Fundamentals of Cryptocurrency as a Form of Digital Payment. This resource outlines definitions, process flows and the role of participants in cryptocurrency.

Cryptocurrency is a digital currency that can be used as a medium of exchange through an online experience, such as via a blockchain. This paper examines the role of cryptocurrency in digital payments and varying digital environments, as well as the role of technology, including blockchains, distributed ledgers and cryptography, payments participants and process flows.

"It's important for financial institutions to fully comprehend cryptocurrency to set policies on development and usage," said Jennifer West, AAP, APRP, Senior Director, Payments Innovation Alliance, Education and Accreditation. "Appropriate governance and consideration of consumer rights and protections are important concerns. The Alliance will be developing future resources to educate the industry about cryptocurrency fraud, security and regulatory issues."

The Payments Innovation Alliance's Navigating Through Digital Payments Project Team explores the digital and physical world implications of money and asset movement. To download the report, learn more about initiatives or join the project team, visit https://www.nacha.org/navigating-through-digital-payments-project-team. Organizations interested in joining the Alliance should visit https://www.nacha.org/payments-innovation-alliance.