From Wikipedia, the free encyclopedia
Not to be confused with virtual money or bank deposits.
Digital currency, among its various names,[note 1] is electronic money that acts as alternative currency. Currently, alternative digital currencies are not produced by government-endorsed central banks nor necessarily backed by national currency.[1]It is differed from virtual money used in virtual economies due to its use in transactions with real goods and services; not being limited to circulation within online games.[2] Earlier digital currencies are often backed by a promise to pay a set amount of gold or silver bullion in exchange for each of its units. Others float against whatever individuals are willing to exchange for it.
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[edit] FinCen guidance
On 20 March 2013, the Financial Crimes Enforcement Network (FinCen), a bureau of the United States Department of the Treasury, issued a document providing interpretive guidance to clarify the applicability of the Bank Secrecy Act (BSA) to persons creating, exchanging and transmitting digital or "virtual currencies".[3][edit] List of digital currencies
| Currency | Year Est. | Active | Ledger | Website | Monetary base/USD (April 2013) | Bitcoin-based |
|---|---|---|---|---|---|---|
| e-gold | 1996 | No | Gold & Silver Reserve Inc. | e-gold.com | N/A | No |
| e-dinar | 2000 | N/A | e-dinar Ltd. | e-dinar.com | N/A | No |
| Pecunix | 2001 | N/A | Pecunix Inc. | pecunix.com | N/A | No |
| Ven | 2007 | Yes | Hub Culture | venmoney.net | $2 million (est.)[citation needed] | No |
| Bitcoin | 2009 | Yes[4] | P2P network | bitcoin.org | $2.75 billion (10 April 2013)[5] | N/A |
| Ripple | 2010 | Yes | P2P network | ripple.com | N/A | No |
| IXcoin | 2011 | Yes | P2P network | ixcoin.org | N/A | Yes |
| Litecoin | 2011 | Yes[6] | P2P network | litecoin.org | N/A | Yes |
| Freicoin | 2011 | N/A | P2P network | Freicoin.in | N/A | Yes |
| MicroCash | 2011 | N/A | Semi-P2P network | microcash.org | N/A | Yes |
| BBQCoin | 2012 | N/A | P2P network | bbqcoin.org | N/A | Yes |
| PPCoin | 2012 | Yes | P2P network | ppcoin.org | N/A | Yes |
| Terracoin | 2012 | N/A | P2P network | terracoin.org | N/A | Yes |
| NovaCoin | 2013 | Yes[7] | P2P network | Forum thread | N/A | Yes |
| RuCoin | N/A | No[8] | P2P network | rucoin.org | N/A | Yes |
[edit] Safety
Many of these currencies have not yet seen widespread usage, and there is concern that the newer bitcoin based systems may be scams.[citation needed][edit] See also
[edit] Notes
- ^ Other names include: Cryptocurrency, Virtual currency, Payment Scheme, Virtual Medium of Exchange, etc.
[edit] References
- ^ Melik, James. "Digital currency: Brave new world or criminal haven?". BBC News. Retrieved 28 February 2013.
- ^ Chen, Adrian. "The Underground Website Where You Can Buy Any Drug Imaginable". Gawker. Retrieved 28 February 2013. "He entered his address and paid the seller 50 Bitcoins—untraceable digital currency—worth around $150. Four days later the drugs, sent from Canada, arrived at his house."
- ^ "FIN-2013-G001 : Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies". Financial Crimes Enforcement Network. March 18, 2013.
- ^ "Bitcoin Exchange Rate in USD". Retrieved 21 March 2013.
- ^ "Market Capitalization". Blockchain.info. Retrieved 21 March 2013.
- ^ "Litecoin Exchange Rate in USD". Retrieved 1 March 2013.
- ^ "NovaCoin Exchange Rate in BTC". BTC-E. Retrieved 1 March 2013.
- ^ "News / Closing the trading of currency pairs, RUC/BTC". BTC-E. Retrieved 1 March 2013.
[edit] External links
- Virtual Currency Schemes, European Central Bank, Oct. 2012.
- List of alternative cryptocurrencies Bitcoin Wiki (accessed 6 Apr 2013)
