Cryptocurrencies, also called cryptos, are insubstantial currencies exchanged in digital data. They are sometimes called crypto assets, and they have the same meaning as virtual currency. Cryptography is used to secure and verify transactions.

Definition of a crypto asset (virtual currency)

• Payable to an unspecified number of people and interchangeable with legal tender
• Can be recorded and transferred digitally
• It is not a legal tender or assets denominated in legal tender (e.g., prepaid cards)

 

Cryptocurrency is often confused with electronic money because it has no substance. However, cryptocurrency differs significantly from electronic money in that it is not legal tender.

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