Digital currency value – the real picture

Digital currency value – the real picture

Digital currency represents electronic money (e-money), an asset represented in digital form and having some monetary characteristics. It’s a currency that can be denominated to a sovereign currency and issued by the issuer responsible to redeem digital money for cash.  

Digital currencies would be a closer representation of the currency we use every day to make purchases in the current fiat system. Most of the currency in the world is digital and not held in physical form. Digital currency and it’s increasingly being accounted for and traded on the internet, where it can be exchanged at ever lower cost.  

Digital currency is a digital form of fiat currency and is issued by a central bank, credit institution or e-money institution. It’s the money in the bank, credit cards, debit cards electronic banking or phone banking and so forth.  

And all these platforms have digitised the rand, dollar, pound, euro, yen or rupee and so forth.  

A digital currency doesn’t have to be based on encryption. It should be paperless and enable digital transactions. It should be widely accepted as a form of payment. 

Currency itself is a token of value. Money is a real notion of value and currency its unit and symbol as well as a token. Currency is thus often seen as value itself but is actually only a symbol. It’s legitimised by government approval or objectively through gold backing of equal value and acceptance over a large region, state or country makes it become money.

Categories: Currencies