Many may be familiar with USAA, the banking and financial services institution whose clients (or “members”) all have military family connections. What you may not know is that USAA had led the pack in keeping abreast of digital services for its members. One new service demonstrates their commitment to delivering cutting-edge services to members: tracking the value of Bitcoin accounts. A recent Think Advisor article explains.
Bitcoin is a relatively new phenomenon: computer-generated currency. Put simply, using special software and hardware, computers solve math problems to generate Bitcoin in a process called “mining.” The thought process is that, like being paid in regular currency, Bitcoin are the reward for time, energy and computational power expended. As of the time of this writing, one Bitcoin is worth over $700.
Some believe that Bitcoin—or digital currencies in general—are the wave of the future. In that respect, USAA is staying ahead of many traditional banks by incorporating the ability to track Bitcoin account values on the Bitcoin exchange Coinbase. On these types of exchanges, Bitcoin can be bought, sold, stored or received. In recognition of the need for security, especially with online accounts, USAA ensures that no account information is stored, an extra layer of protection against hacking.
Since USAA’s pilot program began in 2015, there has been a lot of interest in Bitcoin, even internally at the institution. Many employees also have Bitcoin accounts and some even mine for Bitcoin. As many employees and experts see Bitcoin as the currency of the future, there is excitement around providing tracking services to USAA members. The bank hopes that this additional service keeps it at the cutting edge in providing services to its military family members.
We at Family Estate Planning Law Group highlighted the importance of digital assets last month, and we strongly believe that in the importance of ensuring all digital assets, like Bitcoin, are aligned with your estate plan. For more information on aligning assets with your estate plan, explore our website and contact us to schedule your consultation today!
Reference: Think Advisor (March 18, 2016) “USAA Accounts Can Now Track Bitcoin”