Explanation/Reference:
Explanation:
A Trusted Platform Module (TPM) chip of version 1.2 or greater is required to support Virtual Smart Cards.
Virtual smart card technology from Microsoft offers comparable security benefits to physical smart cards by using two-factor authentication. Virtual smart cards emulate the functionality of physical smart cards, but they use the Trusted Platform Module (TPM) chip that is available on computers in many organizations, rather than requiring the use of a separate physical smart card and reader. Virtual smart cards are created in the TPM, where the keys that are used for authentication are stored in cryptographically secured hardware.
References:
https://technet.microsoft.com/en-GB/library/dn593708.aspx