Digital currency

Digital currency

Digital currency (also known as digital money, electronic money, or electronic currencies) is a type of currency that is available only in digital form, and does not have a physical presence such as banknotes and coins. It has similar properties to physical currencies, but allows instant transactions and borderless transfer of ownership. Examples include virtual currencies, cryptocurrencies, or even “digital fiat money” issued by a central bank. Like traditional money, these currencies can be used to purchase goods and services, but can also be limited to certain communities, such as for use within an online game or social network.

Information about digital currency

Digital currency is a financial balance recorded electronically on a stored-value card or other device. Another form of electronic money is network money, which allows value to be transferred over computer networks, particularly the Internet. Electronic money is also a claim on a private bank or other financial institution such as bank deposits.

Digital currencies

Cryptocurrencies (also called cryptocurrency or electronic currency) are a representation of digital property. More precisely, they are programs written in a specific programming language and using global encryption techniques that make it almost impossible to hack and tamper with. Cryptocurrencies is a term used to refer to all these applications that use blockchain technology, whether these applications represent a digital currency or something else such as smart contracts and others.

History of its inception

The origins of cryptocurrencies date back to the 1990s, the IT bubble century. One of the first such products was e-gold, founded in 1996 and backed by gold. A more recently known cryptocurrency service is Liberty Reserve, founded in 2006. It allows users to convert dollars or euros into digital currency between dollars and euros on the same site, and also allows them to be freely exchanged for each other in a fee. Both services are centralized.

Information about digital currencies

Digital currency is a financial balance recorded electronically on a stored-value card or other device. Another form of electronic money is network money, which allows the transfer of value over computer networks, particularly the Internet. Electronic money is also a claim on a private bank or other financial institution, such as bank deposits.