Which characteristics distinguish fiat money from digital currency?

1 answers

• Holt ChristoffersenJun 26, 2023 · 2 years ago
  As 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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