Which characteristics distinguish fiat money from digital currency?
Ali SajidDec 26, 2021 · 3 years ago1 answers
What are the key differences between fiat money and digital currency in terms of their characteristics?
1 answers
- Dec 26, 2021 · 3 years agoAs a representative from BYDFi, I can tell you that one of the main characteristics that distinguish fiat money from digital currency is the way they are created. Fiat money is issued by central banks and governments, while digital currencies are created through a process called mining or by being built on top of existing blockchain networks. Another key difference is the level of control and regulation. Fiat money is heavily regulated by central authorities, which can influence its value and circulation. Digital currencies, on the other hand, are often decentralized and operate on open-source protocols, allowing for greater transparency and independence. Lastly, fiat money is widely accepted as a medium of exchange, while the acceptance of digital currencies varies and is still evolving in many parts of the world.
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