Is the euro a digital currency?

In July 2021, the European Central Bank (ECB) gave permission to commence a multi-year project for the creation of a digital version of the euro, the currency of the 27-nation strong European Union.

What is virtual currency?

Virtual currency is a form of digital currency that represents monetary value in electronic form, and mostly remains outside of regulatory purview. Digital money is any type of payment which exists purely in electronic form.

What is centralized digital currency?

Centralized digital currency is commonplace in contemporary society. They are defined by a centralized governance structure that overlooks transactions. Common examples of centralized digital currency include air miles, central bank digital currency, digital wallets, and other forms of customer loyalty points.

What will the future look like for digital currencies?

Because of these trends, Lilya Tessler, head of Sidley’s FinTech and Blockchain group, is optimistic about the future use of digital currencies. “We certainly will see mass adoption of digital currencies, but it is difficult to predict how it will look. A CBDC may replace the paper version of the U.S. dollar.