Some differences between digital currency and cryptocurrency
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today we will know briefly what is the difference between digital currency and crypto currency?
The current currency in the world is paper currency. So today as we are going to know about digital currency we need to know what digital currency is. Digital currency is central bank digital currency that is under the control of the government and is completely legal, which can be issued by a country's bank very easily, but it will not be like normal paper currency but it will be through digital medium. The notes or coins we all use as a medium of purchase or exchange have a government stamp on them, so we can recognize the original as a fake. These money or coins are completely legal and can be used by people of all ages but digital transactions will be done digitally. Now many of you may have a question that what is the purpose of bringing digital currency to have paper currency? Its purpose is simple, understand the point firstly there will be several financial transaction benefits, saving the trouble of printing notes and cost of making coins, protection from harassment, payment system digital etc.
Now let's talk about the difference between cryptocurrency and digital currency. The identity of cryptocurrency users can be easily anonymized through the use of blockchain technology, but this official digital currency is fully controlled by banks, meaning it is centralized and cryptocurrency is decentralized. The value of a paper currency is fixed as is the value of a digital currency but the value of a cryptocurrency is very volatile. Currently, the central banks of many countries have introduced digital currencies. According to the analysts, in the future, the currency of the central banks will be able to capture the international market. Cryptocurrencies have been around for a long time in digital form such as bitcoin, ethereum etc. coins but many people use them. The biggest difference between cryptocurrency and digital currency is that cryptocurrency is not controlled by any specific person or any specific type of organization but we all know that banks are controlled by the government. We can use e-wallet to make online transactions. Another difference between e-wallet and digital currency is that e-wallet has no value of its own, it is completely dependent on specific currency. That is, the price of money in the international market will be the price of money kept 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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You are right that there is a difference between digital currency and cryptocurrency that we need to understand and thanks to you for sharing the difference between both which is pretty much helpful for many newcomers in this market.
Although crypto is a type of digital currency. But there are many differences between these two. As we see various digital currencies that are regulated by central banks. Thanks for sharing this.
At present it is foolish to hold paper currency, at this time Crypto Stable Coin or Crypto should be held.