Riyadh-Mohammad al-Amin Jamous
The world has become in a feverish race with new technologies, as it began to move strongly towards the use of cryptocurrencies and digital currencies in daily transactions after it became a strong market that competes with its paper counterpart, and questions are being asked about the identity of the difference between cryptocurrencies and digital currencies. Are they the same or are there differences? The “Riyadh Chamber” organized a lecture on the danger of dealing with these currencies aimed at defining the types of cryptocurrencies, their origins, their truth, and the position of regulators and legislators on them, presented by Dr. Meshal bin Saleh Al-Samhan, professor of commercial law at Majmaa University and researcher in financial technology.
Dr. Meshal bin Saleh Al-Samhan
Digital currencies and Bitcoin
<During the lecture, Samhan explained that cryptocurrencies include a number of types, and that Bitcoin is a stand-alone type, and that the chosen definition of Bitcoin is: A secure, intangible, decentralized, cryptographic asset that has value and is barterable. He then said that other cryptocurrencies differ from Bitcoin in that some of them are backed by a project, some are affiliated with a company or project, some have created a payment service for a specific company, and some are under construction, covered with gold, or have the purpose of being usurious (loan with interest).Samhan explained that the rest of the cryptocurrencies are different from Bitcoin.
Difference between digital and virtual currencies
Al-Samhan added that there are several differences between digital, virtual and cryptocurrencies, explaining that digital currency is «a currency with the electronic liability of a central bank that can be used to settle payments or as a store of value» and virtual currency is «a virtual currency in a specific virtual world, within a computerized electronic system, often in games, and has value in its specific world.»Virtual currency is "a virtual currency in a specific virtual world, within a computerized electronic system, often in games, and has value in its specific world."
Similarities between the two currencies
There are important points that unite the two currencies, the most important of which is the use of blockchain technology, which requires these currencies to be accessed only through computers and mobile phones, as they exist only in electronic form.
Cryptocurrencies
Digital currencies are issued by central banks and are regulated by countries according to their monetary policy and consistency with fiscal policies, called Central Bank Digital Currency (CBDC) and have an electronic ledger and carry a unique serial number, to prevent counterfeiting and allow traceability.
Digital currencies have an electronic ledger and carry a unique serial number, to prevent counterfeiting and allow traceability.
Cryptocurrencies
Cryptocurrencies are a facet of digital currencies that appeared in the financial markets about 10 years ago, and have emerged in the last three years strongly, and the most prominent examples are Bitcoin, Ethereum, Binance Coin, Cardano, and Dogecoin.
Cryptocurrencies are a form of cryptocurrency.
Warning against suspicious trading
Al-Samhan warned against dealing with these currencies due to the harmful, mysterious, ignorant, facilitative, deceptive, deceitful, and some internationally prohibited transactions such as money laundering and supporting terrorism.
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