Digital currency (digital currency, electronic money or electronic currency) is a scale or record stored in an Internet-distributed database, in an electronic computer database, in digital files or in a card of stored value.
Examples of digital currencies include cryptocurrencies, virtual currencies, central bank digital currencies, and e-cash.
Digital currencies have similar properties to other currencies, but do not have the physical shape of banknotes and coins. They have no physical shape, they make transactions almost instantaneous. It is not usually issued by a government agency, virtual currencies are not a legal tender, and it is easier to transfer ownership at state borders.
These currencies may be used to buy physical goods and services, but may also be restricted to certain communities, such as those used in an online game.
One type of digital currency is often traded for another digital currency using arbitrage strategies and techniques.
In 1983, a research paper by David Choum introduced the idea of digital cash. In 1990, he founded DigiCash, an e-cash company in Amsterdam, to commercialize his ideas in his research.
Electronic gold was the first widely used Internet currency, introduced in 1996, and has grown to several million users. Users of the electronic gold mailing list used the term “digital currency” to describe peers. In 1997, Coca-Cola offered to buy from vending machines using mobile payments. PayPal launched its service with the USD sect in 1998. In 2009, Bitcoin was launched, marking the launch of blockchain-based digital currencies without a central server. Blockchain-based digital currencies, also known as cryptocurrencies, have shown resistance to the government’s efforts to regulate them, as there is no central or individual organization with the power to shut them down.
In some cases, digital currency has been implemented as a decentralized system of any combination of currency issuance, ownership records, ownership transfer and certification, and currency storage.
Since 2001, the European Union has amended the Electronic Money Instruction on the Access to, Monitoring and Precautions of Electronic Monetary Institutions for the last time in 2009.
Doubts have been raised about the true nature of the EU’s e-money. This is because calls have been made in connection with the 2007 EU Payment Services Directive in favor of merging payment institutions and electronic money institutions. Such a merger could mean that e-money is in the nature of bank money or biblical money.
Governments that have recognized digital currency
Canada, China, Denmark, Ecuador, the Netherlands, Russia, Sweden, India, Switzerland and the United Kingdom