Saturday, December 10, 2016

Does electronic banking mean dealing with virtual currency?


No, simply conducting transactions electronically does not mean you are dealing with virtual currency. It is certainly true the funds held in your account by your local bank may not physically exist but the bank uses the physical currency for all its transactions. The transaction simply represents the electronic representation of the physical currency.

Just because much of the traditional money supply in banks is held electronically on computers, that doesn’t make the dollar or euro or whatever a digital currency. Although most bank transactions are digital, they’re still carried out in traditional currency.

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