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PSI Pay Explains The Differences Between Cryptocurrency And Electronic Money

Bitcoin was established in 2009 and has been fluctuating in value ever since. As the popularity has increased, the public has become interested in the inner workings such as mining and public ledgers. Cryptocurrency such as bitcoin is complicated and has been confused with e-money or electronic money. These are two completely different systems with notable differences. E-money is traditional currency that is placed in electronic storage. This is often a central bank. The users create an account using a service like PSI Pay to access the funds online. These funds have a direct link to actual currency. E-money is generally used for electronic transactions through an app but the account can be accessed with a prepaid card. When the card is linked to the users account, physical money can be obtained.

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Bitcoin is a cryptocurrency with no central authority. A computer network authenticates the transactions. The value fluctuates according to the demand. Cryptocurrency is an alternative to traditional currency and is not printed but mined through a computer network. Bitcoin is protected from inflation because a limit of 21 million has been established. A platform is required to use bitcoin. There are numerous providers offering not just the cryptocurrency but a digital currency wallet for storage. This type of wallet is free and cross border payments in the SEPA area can be conducted through PSI Pay using EcoPayz. Bitcoin can be purchased with a debit or credit card once the wallet is in place. The wallet is a private key enabling the public ledger to be used for bitcoin transactions. The wallet is secure due to authentication and encryption protections.

An eWallet is similar to a traditional wallet. An online wallet is created through a service such as PSI Pay so money can be loaded using a credit card or bank account for funds. Funds are transferred between accounts online quickly and securely with an eWallet. A bank is not involved in the transaction. Not all services enable the user to withdraw money using an ATM but this service is possible with PSI Pay. This cannot be done using cryptocurrency because it has no connection to traditional currency. Cryptocurrency regulation is currently being debated by the policy makers. The current regulation is extremely limited. The Financial Conduct Authority in the U.K. is investigating the business of cryptocurrency around the clock. This means it is likely cryptocurrency will eventually become regulated.

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