Are digital currencies and cryptocurrencies the same or different?
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today I will share what digital currency and crypto currency are the same? Or different? The currency we currently use is paper currency. Since we are going to know about digital currency, we need to know what digital currency is.
Digital Currencies, Central Bank Digital Currencies are maintained by the government. which can be issued by a country's bank but is not the same as normal paper currency. It is transacted digitally. Notes or coins are used as a medium of purchase or exchange, which are stamped by the government. So that we can understand whether the price is genuine or fake. These coins are officially legal and can be used by people of all ages. But digital transactions will be completely digital. Now the question may come among many, what is the purpose of creating digital currency to have paper currency? Its purpose is very simple, firstly there will be several financial transaction facilities, saving the trouble and cost of printing notes, protection from harassment, payment system completely digital etc.
Let's discuss the differences between cryptocurrency and digital currency. Cryptocurrency users can be anonymous through the use of blockchain but the official digital currency is fully controlled by banks. It means that digital currency is centralized and cryptocurrency is decentralized, the value of paper currency is fixed as the value of digital currency but the value of cryptocurrency is volatile. Currently, central banks in some countries have introduced digital currencies, according to analysts, the currency of central banks will take over the international market in the future. Cryptocurrencies have been around for a long time in digital form. Coins such as Bitcoin, Ethereum etc. are already being used by many users. The major difference between digital currencies and cryptocurrencies is that cryptocurrencies are not controlled by a specific person or organization but banks are controlled by the government. We can use e-wallets to transact or hold money online.
One difference between e-wallets and digital currencies is that e-wallets have no value of their own. It is completely dependent on the specific currency, the value of the money in the international market will be the value of the money in the e-wallet.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
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Although cryptocurrencies are a type of digital currency, they are not regulated, but digital currencies are regulated by central banks. Thanks for writing about a beautiful topic.
You made the relationship between digital currencies and cryptocurrencies the same or different today. Nice to see your post. Sometimes posts like this try to make a difference.