Virtual Currency of Financial Information Systems

A closed virtual currency is a term intended for digital money used only for payment and purchase purposes within some closed virtual communities. These currencies have no connection to the real money world and cannot be converted into real currencies or tangible services.

One of the simplest examples of closed virtual currencies is the balance held by customers. This balance can only be used within the store, and there are other closed-end currency labels such as the non-convertible default currency and the closed-loop currency.

Technological and digital transformations and developments have radically changed the way things are handled, including the way things get paid for services, the great growth of e-commerce in recent years and the spread of virtual communities have led to the need for alternative ways of doing business.

One of the most important alternative methods that developed and developed on the Internet and virtual communities was the virtual currency method, the digital money through which real goods and services can be purchased online, although they do not have a clear legal formula in some countries, It is an incomplete form of money, but it nevertheless imposes itself as a widely used method in many areas.

The default currency does not have one form, and it varies according to the type of virtual community and the services it provides. Therefore, the virtual currency has two types:

The First Type Is the Open Currency

A virtual currency that can be exchanged for real money using online exchange systems or ATM machines intended to convert the virtual currency into real money.

One of the most prominent examples of the open virtual currency is the Bitcoin coin, one of the most popular currencies traded on the Internet, and because the open currency has a realizable value for real money and can be replaced in real currency, it is treated as property or capital assets for taxes in countries such as the United States America.

The Second Type Is Closed Virtual Currencies

They are created to deal with closed virtual communities, and are limited only to transactions for virtual purposes within those closed communities only.

Closed virtual communities allow real money to be converted into a closed virtual currency but not a reverse process, unlike open societies that allow their virtual currency to be converted into real currency. The best example of closed virtual currency is purchases made in games, applications, and e-shops.

Services and objects purchased within such applications and games may be exchanged for services and other purposes within the same application or game of course without any taxes resulting from them and certainly without the possibility of replacing them with real money as mentioned earlier.

Today there are many virtual closed communities that own their own virtual currencies, most notably: the Gold coin of the World Of Warcraft community, as well as the Tokens video of the Video Arcade community as well as the Loyalty Points.

The social networking giant Facebook also has its own currency called Facebook Credits. This currency can be obtained through payment in several ways, such as credit card, PayPal or mobile phone, or through some retailers selling Facebook Credits.

This currency enables users to purchase features and features within Facebook users' games of up to four thousand games, where the user buys the objects, weapons and secret characters in those games for a certain amount of his balance of Facebook Credits and the service is spread today in more than seventy countries around the world.

Closed currency is characterized by its central design compared to open currencies such as Betcuen, which is dealt with between two individuals and is not controlled by any central authority. Closed currencies have a central system issued currency and determine the rules governing the use, and record transactions between users and retain the right to withdraw the currency from circulation Within the community in the event of a problem.

But it should also be noted that the closed virtual currency method has its drawbacks and disadvantages as a way to get services. The downside is that the closed virtual currency is a small and rare liquidity currency within the communities it owns, unlike open virtual currencies such as Bitquin, which has Bitcoin Mining To produce currency for its users permanently.

The other downside is that virtual communities, no matter how safe, may be hacked by hackers and experienced cyber-theft. Such operations expose the user to losing all his virtual currency with similar piracy and theft.

The user may also be suspended for his account on these communities or permanently canceled by the default administrator who runs the activity within the virtual community, and may be made by mistake by the user, which in both cases will lose its balance of the default currency.

The most important advice that must be followed when dealing with the virtual currency is to buy it with balance and need and not to allow unconscious users such as children to deal with it, we have often seen incidents of children who spent thousands of dollars from their parents' money to buy the purposes and services in games and electronic applications that attract thousands of users around the world.

Buying and Selling Virtual Currency

There are 10 facts to buy digital currency, according to experts, which is that there are more than 300 methods of purchase, including the most important credit cards, prepayment, bank transfer, 'PayPal' and 'MoneyGram' and 'Google Play' and any other payment method.

Second, purchases must be made in worldwide currencies that can be accepted worldwide, such as the US Dollar, Euro, Pound Sterling and so on.

Purchases are made through platforms or websites. There are specialized sites for buying virtual currencies through specific currencies. For example, some sites accept currencies other than the US Dollar and some other international currencies.

Also, all the sites where the purchase of Betquin can be sold, and the price is determined according to supply and demand. As demand increases and people turn more dollars into this digital currency, their value increases.

The total size of the combined digital currency market exceeded more than $ 100 billion for the first time in the history of digital currencies, and the percentage of Baitkwin of this market about 45%, a low for previous years, indicating the rise of new currencies.

By registering at the buy and open positions, the investor finds offers from the digital currency campaign and can choose the price he wants within those offers. The average price of the currency offered for sale varies from one platform to another. Therefore, prices must be compared in more than one location before buying to choose the lowest price and vice versa. When selling.

Virtual currencies can be purchased from local merchants or from outside the country as desired by the investor and according to the offers of sale. After purchase, the purchased currencies will be stored in the Block Qin portfolio, and the comparison should be made in order to know the account protection system and the applicable rules and regulations as well as the commissions required.

Some virtual currency platforms impose a ban on dealing with certain nationalities for security purposes that comply with what the banks and financial institutions around the world apply

Virtual Currency Mining

Mining and exploration or searching for metal and in return for the metal gets on the process and this is happening around the world through the exploration of precious metal gold or exploration for black gold oil and this applies completely to the virtual currencies through the mining process, we are exploring for the currency and in exchange for Prospecting we get a profit.

This is also applied to the virtual currency mining is done through what is known as pool pool and it is through specialized devices in the field of mining or through a computer and this will be explained in the next articles If you want mining mining requires a device known as the Miner and more than one model is available and different The price is determined from one model to another and the price is determined by the total production of the mineralization capacity and measured by the mineralization capacity of Terrahash.

Noun	Code	Price (USD)	Market Cap (USD)	Volume (24h)	Market Cap Change (24h)	Volume Change (24h)	Market Cap Change (7 days)
Bitcoin	BTC	6,368.5	$109.22B	$3.31B	31.91%	+1.78%	-6.03%
Ethereum	ETH	449.49	$45.30B	$1.35B	13.08%	+3.56%	-7.88%
Ripple	XRP	0.44564	$17.51B	$154.98M	1.50%	+1.96%	-7.07%
Bitcoin Cash	BCH	726.77	$12.50B	$325.53M	3.14%	+3.67%	-4.14%
EOS	EOS	7.3659	$6.62B	$502.00M	4.85%	+6.34%	-14.95%
Litecoin	LTC	79.258	$4.54B	$232.99M	2.25%	+3.58%	-4.75%
Stellar Lumens	XLM	0.22139	$4.12B	$50.65M	0.49%	+4.81%	+3.68%
Cardano	ADA	0.14264	$3.69B	$49.61M	0.48%	+5.04%	-1.99%
IOTA	MIOTA	0.99764	$2.77B	$28.92M	0.28%	+2.80%	-8.61%
Tether	USDT	1.01028	$2.70B	$1.94B	18.72%	+0.53%	-0.50%

Legitimacy of Virtual Currencies

The virtual currency 'Petcavine' is still the subject of controversy and confusion in dealing with it by states. The perception of this currency varies from permissibility to prohibition, as well as from its use, without being banned or considered illegal. There is no central regulatory body behind it, but it can be used as any other currency to buy online, according to a report by 'Reuters'. An anonymous programmer created this currency during the 2008 financial crisis as a substitute for official paper currencies.

The currency 'Petcavin' has been rising sharply and a remarkable 'boom' since March, when several countries, including Japan, have partially curtailed buying and selling. In fact, only a handful of countries have warned against this currency, while the majority of Arab and international central banks have cautioned against similar treatment for the risks associated with trading in consumer protection. While a number of analysts respond to the concerns of the global banking system about its future existence as a result of growth in dealing in virtual currencies.

'BTCWIN' has risen 330% in some time peroid, taking advantage of the growing interest in digital currencies as an alternative asset, and sometimes safe, but of course does not necessarily mean busy trades near the end of the current path. The digital currency has grown by a few times before the beginning of this year, which has made investors skeptical that things may start to break out of normal shape. But despite the strong demand for electronic currency, but there are countries and central banks issued a major ban on dealing with them.

Countries That Prohibit Dealing in Virtual Currencies

China has announced its willingness to close and block the trading exchanges in the 'configuration' currency, reflecting the growing dissatisfaction with the country's $ 150 billion virtual currency market. China accounts for about 23% of its global trading. The Chinese move shows the concerns of the world's second-largest economy about the rising status of a 'composition' currency in the country's financial system amid a government focus on preventing real capital from escaping to digital or virtual currencies.

Saudi Arabia has taken a decision to prevent banks from buying electronic currency. Has justified its decision that this currency is not controlled by a central bank is clear governing its policies, and that what is going on around some of the international companies that adopted the currency Albtquin to buy their goods cannot be proved through the financial statements of these companies. And that this currency can be a means of illegal transfer of funds, especially as they are not subject to any tax systems.

In a circular to banks, financial institutions, exchange, financial intermediation and the public in 2014, the Central Bank of Lebanon warned against buying, acquiring or using electronic money. The circular explained: 'With reference to the basic decision No. 7548 dated 30/3/2000 on financial and banking operations by electronic means, especially Article 3, which prohibits the issuance of electronic money electronic money from anyone and deal with it in any form.'

Iceland exercises strict capital controls as part of its monetary policy adopted after the global economic crisis in 2008 and seeks to protect the flow of Icelandic currency from the country. Under the same pretext, the formation of trading in Iceland is prohibited by reason that it is inconsistent with the Foreign Exchange Act.

The Government of Vietnam and the Central Bank have confirmed that formation is not a legitimate method of payment. After a few general memos against the use of composition, Vietnam declared that dealing with this currency is illegal in financial institutions and for citizens, the association between formation and criminal activities such as money laundering.

The Central Bank of Bangladesh (CBB) has expressed concern that there is no central payment system for the 'Bitcoin' currency, which could lead to people being exposed to 'financial harm'. It was based on the provisions of the Foreign Currency Control Act of 1947 and the Money Laundering Control Act of 2012. Trading in formation and other digital currencies could result in up to 12 years' imprisonment. The bank said in an official statement in September 2016 that any transaction through configuration or any other encrypted currency is a crime punishable by law.

The Central Bank of Bolivia has banned the use of configuration and other virtual currencies, as did Kyrgyzstan, which is the use of the form of illegal payment form.

Ecuador's composition and other virtual currencies were banned by a majority vote in the National Assembly (parliament). In Russia, even with the recent legal victory to lift the ban on sites related to pornography and other digital currencies, the ban remains in practice, if not formally.

Germany has officially recognized the currency as a form of electronic money, and the German government has therefore been able to tax the profits of companies that deal with Btkwin, while individual financial transactions remain exempt from taxes. The currency is also legalized in a large number of countries, notably Canada, the United Kingdom, Sweden, Austria, Switzerland, etc.

In the United States, it has recently been ruled that currency formation is a currency and a type of currency and can be subject to government regulation, but the United States has not officially recognized the currency yet.

Conclusion

'The future of virtual currencies depends on technological developments. It is characterized by speed and low cost,' pointing out that traditional remittances have a cost and need time. If the large amounts of domestic markets are diverted to foreign markets, there are two costs incurred by the transferred or sent funds. The first is the transfer fee by country. This is limited to each transfer.

However, the biggest cost is in the process of currency exchange, ie converting it into another currency such as the euro, , Where the cost here is in the currency exchange rate, while almost three times when the transfer by bank account or through banks, and that the time needed for remittances, to Europe up to two days of work, the larger amounts are based on the agreement between the company -The client, where It is a matter of securing the amount because these large amounts do not move from one place to another, but the process is done through either an internal clearing operations of the company or with banks or other companies in the sector.

The risk of virtual currencies is that they are out of control by central banks, so it is difficult to have a future in remittances, but noted that the Qin Block technology is more receptive, a faster system, while at the same time exclude that the companies are currently abandoning the traditional system of conversion . the future of virtual currencies, It has become clear to them that cyber currencies are much more than toys and they cannot afford to ignore this fact anymore. They have realized what is going on here and how cryptocurrency could become a bit of a problem in the near future. Especially bitcoin which is the largest digital currency known to the world.

Bitcoin peers pose a serious threat to the money system being established by the banks so far. These peers found a good way how to use bitcoins to circumvent the established money system and turn it to their advantage and the banks do not like this at all.

What we know as money, greatly depends on the state authority for credibility and the banks play the main role in managing both the quantity and the price of it. Cryptocurrency is a completely different thing and it doesn’t need the state or the banks for credibility because it has the encryption or the unhackable technology, guaranteeing value depending on technological developments, is characterized by speed and low cost.

The financial sector and financial remittance systems have witnessed significant developments over the past years. These developments have resulted in the fact that many of the services that have been paid today are thanks to the technological development offered to customers by banks free of charge. With the passage of time and the emergence of many developments in the remittance sector, there must be regulation, standards and procedures imposed by the central banks in the future for this market, including the virtual currency or any other payment instrument become influential in this sector.

The Impact of Cryptocurrency on Banks

It is completely true that most of the banks simply cannot turn their eyes away from the fact that the cryptocurrency is booming right in front of them and they cannot do anything about it. The guardians of official money do not have an adequate answer to the digital coin challenge and all around the world, the banks are urging to find a way how they can heighten their oversight. All this underlying cryptocurrency technology seems to simply is too much for the central banks.

This only means that they will not let this pass unnoticed that is for sure. The major central banks’ officials watched with joy as the aforementioned technology pioneered its first steps into the world economic system.

Little did they know that this technology will become so enhanced and upgraded and even become a threat to their way of doing things. In fact, today cryptocurrency has become more of an increasingly pervasive technology and it seems that the officials of the banks are too late to react to both the opportunities and pitfalls of the digital coinage.

It has become clear to them that cyber currencies are much more than toys and they cannot afford to ignore this fact anymore. They have realized what is going on here and how cryptocurrency could become a bit of a problem in the near future. Especially bitcoin which is the largest digital currency known to the world.

Bitcoin peers pose a serious threat to the money system being established by the banks so far. These peers found a good way how to use bitcoins to circumvent the established money system and turn it to their advantage and the banks do not like this at all.

What we know as money, greatly depends on the state authority for credibility and the banks play the main role in managing both the quantity and the price of it. Cryptocurrency is a completely different thing and it doesn’t need the state or the banks for credibility because it has the encryption or the unhackable technology, guaranteeing value.