Digital monies are exactly what they sound like: monies kept and transferred electronically. They’re an internet based medium of money or exchange distinct from real coins and banknotes, but allows for borderless transfer-of- possession and transactions that are instantaneous.
Real digital monies date back to 1990s.The first digital currency was E-gold, created in 1996 and backed by gold. Both services were believed to be used for money laundering. Therefore, they were necessarily shut down by many authorities including the USA.
Emerging in 2005, QQ coins and Q coins were used on Tencent QQ’s messaging platform as a sort of commodity -based digital currency. In China, Q coins were so powerful that they were believed to have had a disrupting effect on the Chinese Yuan. Introduced in 2009, Bitcoin has become the most widely accepted and used digital currency.
In 2016, the city of Zug in Switzerland started to take bitcoin as a manner of payment. Bitcoin instantly changes into Swiss currency, to reduce danger. The payments are additionally limited to 200 francs to lower the degree of dangers during the trial phase. The project makes Zug the world’s first city to let bitcoin payments from people for government services and utilities.
That is a mistake around the terms “ digital” and “virtual”. Mistakenly, folks often use them interchangeably. In reality, virtual currencies are a form of currency that is digital. Quite simply, all virtual currencies are digital, but the inverse is incorrect.
There are just two primary types of digital currencies: cryptocurrency and virtual money. According to a study carried out by European Central Bank in the year 2012, a virtual currency is “ unregulated, digital cash, which is issued and controlled by its developers, and accepted and used by the members of a special virtual community” to a type. In 2013, The US Department of Treasury defined virtual currency as “a medium of exchange that functions like a money in some areas, but does not have all the features of real money”. On the flip side, cryptocurrency is a medium of exchange that uses cryptography to ensure the transactions and to control the development of further units of the money.
Digital money has several disadvantages. Many of those currencies have no widespread use and banks don’t offer or take services for them. There are worries that cryptocurrencies are very insecure due to their exceptionally high volatility. In addition, regulators in certain states have warned against their use and some have taken measures to dissuade users.
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