Why do banks ask you to activate the digital token and what is it for?

digital token It arrived at one of the best-known banks in Peru, BCP, in 2018 as a replacement for the well-known physical token. Currently, various financial entities They have this tool that seeks to provide greater security to their customers.

This new technology, closely related to the blockchain, seeks to store and protect cardholder data in case these are hacked. TrustCommerce was the one who created the concept of ‘Tokenization’ in 2001.

What is the Digital Token?

All bank cards currently have a digital Token, which can be approved through the application of the entities themselves.

In the field of cryptocurrencies, they are pieces of programming code that do not have any monetary value, but do represent one, which can be transferred between different users. A referential example of this is the casino chips, which represent a certain amount of money, but outside the premises they have no value.

Why do banks ask you to activate your digital Token and what is it for?

The digital Token that banks offer is a digital security key that is generated within the entity’s application and allows you to confirm operations both in the app and in internet banking, without the need to use additional keys.

According to the official BBVA website, the digital Token must be activated for the following three reasons:

  • Security: It will only work with your cell phone, since it is associated with your mobile phone and identity document.
  • Ease: Leave SMS messages aside and it is generated within the application itself, auto-completed for each operation you perform.
  • Unlimited: the keys are renewed every minute for free and it allows you to confirm your operations from wherever you are.