Crypto Digital Currency Vs Cryptocurrency

[Mika]

Central Bank Digital Currency is a highly contested topic these days. A lot of people believe that the government is trying to introduce CBDC in order to make people stop using crypto currency. However, CBDC is very different from cryptocurrency, CBDC is a digital currency created by establishing fiat reserve.

 

[Jasmine]

It is good that the postal analyse all them teeth are the differences between digital coin and cryptocurrency coin the fact is that all of them their digital coins but cryptocurrency value is not stable, it flauctuate and it operate on decentralized system where it can't be controlled as it transactions are on blockchain ledger.

Central Bank Digital Currency or CBDC are centralized digital currency, it is controlled by central banks and the governments controls the central banks. However, crypto currency is decentralized and they are not controlled by individuals or institutions but by the public who have invested in the currencies. CBDC is just the digital version of fiat currency.

 

[Dowenship]

Toy

A lot of people confuse digital currency with crypto currency. While all crypto currencies are digital currencies, not all digital currencies are cryptocurrencies.

Fiat money can be sent digitally or transact digitally. For instance you can use card payment or mobile payment wallet, or QR Code payment. None of these transactions use physical money, you use virtual money (or digital money for transaction).

Crypto currencies on the other hand do not have any physical existence, they are created digitally, transact digitally, and exist only in the internet. Cryptocurrencies are called cryptocurrencies because they utilize cryptography to anchor their exchanges.

In recent time, Central Banks in various countries are also trying to create their own Digital Currency and they are calling it Central Bank Digital Currency. China has been using CBDC since some time.

Your post are interwoven, you said digital currency can be used for card payment or QR Code payment. None of the transactions use physical money, but they are virtual money.. But crypto currency also use QR code, also be used as card payment and its not physical too... So what's the different!.

 

[Ahmedo24]

This thread is a good discussion to clarify the difference of the crypto coin to the digital currency. If you have been seeing my posts about crypto I always say crypto coin and not crypto currency because Bitcoin and other crypto coin are commodities and not currency or money. The digital Yuan is an example of a digital currency that is held in the phone and can be used from there. We have digital wallets here for that purpose.

Yeah you are very much correct I think most people don't really understand most of these terms used especially in cryptocurrency and there has been debate whether cryptocurrencies are digital assets or digital currencies of which personally I believe they are digital assets not digital currency but like the digital Yuan we can call it a digital Currencies because it is backed by law.

 

[Deleted member 51169]

This thread is a good discussion to clarify the difference of the crypto coin to the digital currency. If you have been seeing my posts about crypto I always say crypto coin and not crypto currency because Bitcoin and other crypto coin are commodities and not currency or money. The digital Yuan is an example of a digital currency that is held in the phone and can be used from there. We have digital wallets here for that purpose.

This is another eye opener from you to me. This platform is really bursting my head with refine contributions from its users.
Guess, I am victim of what you stated above. I mostly use crypto currency/ies in my analysis. Now I know, that the perfect word usage is coin. Thank you for sharing such knowledge.

 

[Alexandoy]

This thread is a good discussion to clarify the difference of the crypto coin to the digital currency. If you have been seeing my posts about crypto I always say crypto coin and not crypto currency because Bitcoin and other crypto coin are commodities and not currency or money. The digital Yuan is an example of a digital currency that is held in the phone and can be used from there. We have digital wallets here for that purpose.

 

[Mika]

Chinese Central Bank has issued digital currency. This is a central bank digital currency and not a crypto currency. This currency was created by maintaining a fiat reserve in the centra bank. For example, in order to release 1 million in digital currency, 1 million yuan was deposited in the central bank.

 

[Ahmedo24]

Same way Nigerians were shouting down on CBN for creating E-currency, thinking it is crypto which the government ban. Though both looks seemingly on the basis of digital currency but crypto is crypto. Most times government should engage the populace and explain such terms to avoid backlash.

that is the best thing most Nigerians can go to either criticize or shout about government policies without having deep understanding about it the digital in naira that the government as lunch is just like normal paper currency in digital form nothing you are nothing close to cryptocurrency but we are hoping that very soon and they will remove the ban cryptocurrency.

 

[Suba]

Very good enlightenment about Digital Currency Vs Cryptocurrency, so that we all understand and can tell the difference. Crypto runs on blockchain and is recorded on a ledger that is transparent and decentralized, no third party controls it, while Digital money is not transparent because we cannot see all digital money transactions, are confidential,

 

[Jasmine]

A lot of people confuse digital currency with crypto currency. While all crypto currencies are digital currencies, not all digital currencies are cryptocurrencies.

Fiat money can be sent digitally or transact digitally. For instance you can use card payment or mobile payment wallet, or QR Code payment. None of these transactions use physical money, you use virtual money (or digital money for transaction).

Crypto currencies on the other hand do not have any physical existence, they are created digitally, transact digitally, and exist only in the internet. Cryptocurrencies are called cryptocurrencies because they utilize cryptography to anchor their exchanges.

In recent time, Central Banks in various countries are also trying to create their own Digital Currency and they are calling it Central Bank Digital Currency. China has been using CBDC since some time.

 

[Chibson]

I think this post is a very good post because it analyses the clear difference between cryptocurrencies and the digital currencies. It is quite obvious that many people who do not understand the clear difference between these two. Cryptocurrency is decentralized and the transactions is not controlled by anyone acting as a middle person while digital currency is the opposite.

 

[Deleted member 51169]

Truthfully there many things in the Internet world that one doesn't know. Most times due to laziness to read and study concepts, lack of opportunities and information, especially their complexities can lead one astray. As you rightly stated, the government has a duty to engage the citizenry through mediums like town halls, media and campaigns to drive home some policies.

 

[btaliat]

Same way Nigerians were shouting down on CBN for creating E-currency, thinking it is crypto which the government ban. Though both looks seemingly on the basis of digital currency but crypto is crypto. Most times government should engage the populace and explain such terms to avoid backlash.

That's just it. Government is the one at fault. They should take time to be explaining some of the concepts that are new to the populace. Funny enough, I didn't know it before until I read this post. I was among the people that were thinking the new currency works like crypto coins.

 

[Abigael]

I am glad that someone has talked about this here. Indeed there is a big difference between digital currencies and cryptocurrencies. Cryptocurrencies are digital currencies yes but they don't have a physical form like fiat currencies which can exist in both forms. That is why countries like China have banned cryptocurrencies but are working at creating their digital currency.

 

[kayode10]

There is a thin line between digital currency and cryptocurrency. You have explained it very well in your write-up. Some people don't know that not all cryptocurrency are digital currency. An example of digital currency is perfect money. There are some web sellers that will require you to pay them in perfect money on Paypal before you can have their services or products they are selling.

 

[Deleted member 51169]

Thanks for this analysis. I would not have known if not for this thread. In fact, seeing the topic made me laugh until I read the post and did a little research for me to know that there is much omo difference between the two concepts and we do use them wrongly most time.

Same way Nigerians were shouting down on CBN for creating E-currency, thinking it is crypto which the government ban. Though both looks seemingly on the basis of digital currency but crypto is crypto. Most times government should engage the populace and explain such terms to avoid backlash.

 

[Ahmedo24]

It is good that the postal analyse all them teeth are the differences between digital coin and cryptocurrency coin the fact is that all of them their digital coins but cryptocurrency value is not stable, it flauctuate and it operate on decentralized system where it can't be controlled as it transactions are on blockchain ledger.

 

[btaliat]

Thanks for this analysis. I would not have known if not for this thread. In fact, seeing the topic made me laugh until I read the post and did a little research for me to know that there is much omo difference between the two concepts and we do use them wrongly most time.