Currency refers to electronic currencies that are stored electronically in banks and constitute one of three forms of electronic currency. While paper money is still used worldwide, up to 80% of the world’s currency is stored in banks electronically. From an early age it has evolved from an alternative to doing business to a basic form of e-commerce and seems to only continue to grow.
The first digital currency was created during the first internet bubble in the early 2000s. It was named E-Gold and was founded in 1996 by Gold & Sliver Reserve Inc, which allowed users to transfer small amounts of gold value electronically. In the spring of 2000, it became the first e-currency to offer an exchange service for other currencies.
The launch two years before PayPal before 2004 had more than a million accounts. Another service, starting in 2006, Liberty Reserve, allowed its customers to convert euros or dollars into Liberty Reserve money and then return. Unfortunately, shortly after the U.S. government discovered that criminals were using these sites, they were both shut down.
The difference between virtual, digital and cryptocurrencies
While more and more banks are allowing an increase in the number of e-banking services, virtual currencies operate as stand-alone money, the value of which is created by the initial customer. However, the world’s most famous virtual currency, bitcoin, does not meet this specification but covers aspects of all three forms of e-currency.
A digital currency differs from this by money backed by an asset equivalent to its real value. Due to the fact that most of the world’s money is stored in bank computers, we can say that most of the world’s currency is now digital.
Cryptocurrencies are called forms of electronic money whose transitions are encrypted. By using blockchains to store data, they efficiently bind and act as books that users can use for continuous data tracking. Due to the variety of ways to increase the price it often fluctuates in price. Although cryptocurrencies have some degree of anonymity, by law some of them are still required to disclose user data.
The future of transactions
As more banks turn to digital currencies as the main form of electronic document management, and the emergence of a large number of virtual and cryptocurrencies is growing, we can say that the future of global transactions will be conducted electronically. Perhaps in a hundred years paper money could almost be a thing of the past.