Cryptocurrency

A cryptocurrency is a virtual digital currency based on cryptography and peer-to-peer networking, for example Bitcoin.

Sometimes known as 'crypto-assets', also written cryptoassets.

Regulators and some commentators prefer these terms, as a reminder that cryptoassets are not currencies in the traditional sense.

Cryptocurrency, central bank digital currency (CBDC) & regulation

"A CBDC would be fundamentally different to cryptocurrencies or cryptoassets.

Cryptoassets combine new payments systems with new currencies that are not issued by a central bank...

Our Financial Policy Committee has assessed cryptoassets and concluded that they do not currently pose a risk to monetary or financial stability in the UK. However, cryptoassets do pose risks to investors and anyone buying cryptoassets should be prepared to lose all their money...

HMT’s proposed approach [is] for an overarching framework to bring crypto-assets into the scope of activities that are regulated – the ‘regulatory perimeter’."

Bank of England - CBDC versus cryptocurrency

See also

• Altcoin
• Bank of England
• Bitcoin
• Blockchain
• Blockchain Governance Initiative Network (BGIN)
• Central bank digital currency (CBDC))
• Centralised finance (CeFi)
• Cryptoassets
• Cryptocurrency mining
• Cryptography
• Currency
• Decentralised finance (DeFi)
• Digital currency
• Ether
• Fiat currency
• Financial Policy Committee
• Gold standard
• HM Treasury (HMT)
• Libra
• Money
• Non-fungible token
• Regulation
• Ripple
• Virtual currency

Other resources

• Cryptocurrencies: why some are more volatile than others - Naresh Aggarwal associate director, policy & technical, ACT
• Central bank digital currencies - Bank of England