Virtual money / virtual currency / digital coin

Virtual money types and working principle

1. A presentation on virtual currency exchange P resented by- Sambit Kumar Swain 1

2. What is virtual currency ? Virtual money is money which exists only in banking computer systems and is not held in any physical form. Virtual money , or e-money, is the money balance recorded electronically on a stored-value card. It may refers to several systems which enable a buyer to pay electronically by transmitting a unique number (called digital certificate) similar to a banknote number. Both virtual currencies and cryptocurrencies are types of digital currencies, but the converse is incorrect. 2

3. Different types of virtual money… Virtual Money includes four different systems namely: Centralized Systems Decentralized Systems Mobile sub-systems/Digital Wallets Offline Anonymous Systems 3

4. Centralized Systems Many systems—such as PayPal, eCash, Web Money, Payoneer, cashU, and Hub Culture's Ven will sell their electronic currency directly to the end user. Other systems only sell through third party digital currency exchangers. 4

5. Decentralized Systems Decentralized e-money is stored and flows through a peer-to-peer computer network that directly links users, much like a chat room. No single user controls the network. Some decentralized types: Bitcoin Monero Litecoin Ripple Monetary System Dogecoin Nxt 5

6. Mobile sub-systems/Digital Wallets A number of electronic money systems use contactless payment transfer in order to facilitate easy payment and give the payee more confidence in not letting go of their electronic wallet during the transaction. In 1994 Mondex and National Westminster Bank provided an 'electronic purse' or to residents of Swindon On September 9th, 2014 Apple Pay was announced at the iPhone 6 event. In October 2014 it was released as an update to work on iPhone 6 and Apple Watch. It is very similar to Google Wallet, but for Apple devices only. 6

7. Offline Anonymous Systems It can be done ‘offline’. In this electronic money system, the merchants do not need to have interaction with banks before receiving currency from the users. Instead of that, the merchants can collect spent money by users and deposits the money later to the bank. The merchant can deliver his storage media in bank for exchanging the electronic money to cash. 7

8. Conclusion Digital currency reduces overall cost of operation drastically compare to paper money. As the technology is new, there are some security and stability concern about “E-money” which are controllable in most of the cases. Th er e shou l d b e so m e lega l gu i deli n e s a n d l aw abou t this to prevent money laundering and other unethical uses of digital currency. Banks, financial intuitions and governments should come forward and work along with the tech-giants such as Google, apple, Microsoft, face book etc. to develop the revolutionary but secured and stable transaction system using “digital currency.” 8

9. Thank You… 9