Digital Currency - what is it?
Digital Currency
Digital currency is a payment method which exists only in electronic form and is not tangible. Digital currency can be transferred between entities or users with the help of technology. Although it is similar to physical currencies, digital money allows borderless transfer of ownership as well as
instantaneous transactions. Digital currency is also known as digital money and cybercash.
Digital currency currently has only a limited user base and regulatory framework as well as tax treatments of digital currencies is still evolving. In Malaysia, any regulatory framework on digital currency isn't yet to the specific level that should be. Cryptocurrencies and virtual currencies are categories of digital currencies. Digital currencies can eliminate intermediaries, process steps and costs unlike the traditional payment methods. It can also help in making the funds flow more simple and transparent.
At present, digital currencies are not accepted by bank and as a result, interest cannot be earned on them by individuals or organizations. There are also risks associated with digital currencies such as security, currency volatility and payment beneficiary identification.
Digital currency is a payment method which exists only in electronic form and is not tangible. Digital currency can be transferred between entities or users with the help of technology. Although it is similar to physical currencies, digital money allows borderless transfer of ownership as well as
instantaneous transactions. Digital currency is also known as digital money and cybercash.
Digital currency currently has only a limited user base and regulatory framework as well as tax treatments of digital currencies is still evolving. In Malaysia, any regulatory framework on digital currency isn't yet to the specific level that should be. Cryptocurrencies and virtual currencies are categories of digital currencies. Digital currencies can eliminate intermediaries, process steps and costs unlike the traditional payment methods. It can also help in making the funds flow more simple and transparent.
At present, digital currencies are not accepted by bank and as a result, interest cannot be earned on them by individuals or organizations. There are also risks associated with digital currencies such as security, currency volatility and payment beneficiary identification.
Cryptocurrencies
Cryptocurrency is a form of digital money that is designed to be secure and anonymous. It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers. Cryptography was born out of the need for secure communication in the Second World War. It has evolved in the digital era with elements of mathmematical theory and computer science to become a way to secure communications, information and money online. The first cryptocurrency was bitcoin! It was created in 2009 and is still the best known. There are now more than 900 available on the internet of cryptocurrencies.
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