Why virtual currencies incorrectly call cryptocurrency 2 октября, 2021

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Previously, we disassembled the differences between the main technologies cryptocurrency — distributed

Digital money is actively developing and only stand on the threshold of mass use. The general public is familiar with the concept of cryptocurrency for about 10 years, and government agencies began to regulate this sphere only three years ago, and because of the take-off of Bitcoin. The ambiguity of the perception of digital money is clearly visible on the example of Libra, since the financial regulators of different countries have not yet formed a holistic opinion that such Libra is still.

The definition of cryptocurrencies still vary between jurisdictions or even inside them. How many regulators, so many opinions. For example, even in one country of the United States state bodies give cryptocurrency different definitions depending on their competence:

In Russia, officials even called Bitcoin «Currency Surrogate», but we brought a single tree of terms, which the differences and similarities clearly demonstrate.

Jpmorgan Chase presented his JPM Coin as a digital coin, and Facebook leaders called Libra Cryptovaya. Obviously, JPM Coin and Libra differ in functionality, but in both cases, cryptoentziasts have encouraged that Facebook and JPM Coin develops are virtual money, and not cryptocurrency due to lack of decentralization. But they were wrong, because the concept of «cryptocurrencies» may well be the lack of decentralization, since not all cryptocurrencies work in the public blockchain.

Cryptovalyuta.

Outcome: JPM Coin and Libra can be called cryptocurrency, since the protection of the invariating of the data in them is based on cryptography.

A variety of cryptocurrencies are made even greater confusion —

Initially, it seems that these terms are used as equivalent synonyms, but in fact the virtual currency is a variety of digital.

Digital currency

The main feature of digital currencies is intangibleness. You can buy, sell or exchange such currency through electronic wallets or assigned connected networks. Digital currencies and digital money are synonymic expressions.

Virtual currencies, as already noted, is a kind of digital money. For the first time, the European Central Bank made the definition of this term in 2012.

Virtual currency

It turns out that a distinctive feature of the virtual currency is the lack of cryptography and the fact that their emission cannot be carried out by regulatory authorities or the central bank, while Cryptovalitudes have already enjoyed banks in different countries. There are many examples, from the JP Morgan bank with their JPM Coin to the Decree of Venezuela Government, who undertakes to the national banks to take Cryptovaya Crypto EL PETRO.

Outcome: Virtual currencies and cryptocurrencies (coins, tokens) are types of digital currencies, but not the same.

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