Encumbrance and Non-fungible token: Difference between pages

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An encumbrance is a right over an asset, enjoyed by someone other than the owner of the asset.
''Crypto-assets.''


Encumbrances prevent or restrict the owner's flexibility to use or dispose of the asset as freely as if it were ''unencumbered''.
(NFT).


A non-fungible token is a digital token - stored on a blockchain - that certifies a digital asset to be unique.


'''Liens''' and '''mortgages''' are examples of encumbrances.
The best-known, and most expensive, NFTs have related to works of art.




For the purposes of bank liquidity liquidity regulation, an asset may be considered encumbered if:
The difference between an NFT and a cryptocurrency is that units of the cryptocurrency are fungible (interchangeable) and each of equal value.
*It has been pledged; or
*It is subject to any arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn.


NFTs are - by definition - unique and not interchangeable.


==See also==
Accordingly, each NFT can have a different value.
*[[Charge]]
 
*[[Collateral]]
 
*[[Credit enhancement]]
== See also ==
*[[Lien]]
* [[Bitcoin]]
*[[Liquidity]]
* [[Blockchain]]
*[[Mortgage]]
* [[Central bank digital currency]]
*[[Pledge]]
* [[Crypto-assets]]
*[[Security]]
* [[Cryptocurrency]]
*[[Unencumbered]]
* [[Cryptography]]
* [[Currency]]
* [[Digital asset]]
* [[Digital currency]]
* [[Distributed ledger]]
* [[Fungible]]
* [[Intangible assets]]
* [[Money]]
* [[Tangible asset]]
* [[Token]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 14:45, 16 December 2021

Crypto-assets.

(NFT).

A non-fungible token is a digital token - stored on a blockchain - that certifies a digital asset to be unique.

The best-known, and most expensive, NFTs have related to works of art.


The difference between an NFT and a cryptocurrency is that units of the cryptocurrency are fungible (interchangeable) and each of equal value.

NFTs are - by definition - unique and not interchangeable.

Accordingly, each NFT can have a different value.


See also

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