Virtual Currencies News

A virtual currency is an unregulated currency that is stored in and exchanged across networks, software and apps specifically designed for it. Virtual currency’s value is mainly influenced by the sentiment of market participants.

There are many types of virtual currencies, and they can be categorized as centralized or decentralized. Centralized virtual currencies are those made by governments or entities that fully control the ecosystem and the economy. For instance, the form of centralized digital currency known as central bank digital currency (CBDC) and the XRP cryptocurrency are centralized virtual currencies.

On the other hand, a decentralized currency mainly refers to cryptocurrencies that lack a central administrator or third-party intermediary. Instead, the transactions of a decentralized virtual currency are authenticated by a distributed system called a blockchain network. For example, Bitcoin, Litecoin and Dai are decentralized blockchain systems allowing more transparency between parties over the peer-to-peer network.

FIFA Points is an example of gaming currencies and is a virtual currency used in the FIFA Ultimate Team game mode of FIFA video games to buy FUT Packs and FUT Draft tickets and to trade players. Similarly, flight points such as air miles can be a form of virtual currency that may be used to pay for flights and travel-related extras. Additionally, gambling tokens used in the place of money for coin-operated arcade games, which generally have no value outside the slot machines, may also be considered virtual currencies. So, not all virtual currencies are cryptocurrencies, but all cryptocurrencies are digital currencies.