Virtual Currency (VC) collides with the current monetary system that is in place all over the world. VC is any type of digital unit that is used as a medium of exchange – a veritable currency that exists in the digital world. Unlike cash, however, VC is neither issued nor guaranteed by a central bank, nor backed by any commodity. The value of VC depends solely on its supply and demand, and the integrity of its system.
Since it is electronic currency, VC is easily transferable and can be used to pay for goods and services sold through the internet. VC transfers may be made with nominal processing fees as they do not require a lot of facilities and intermediaries.
Bitcoins may be purchased from an online exchange, and then traded from one personal “wallet” to another. This wallet is a small database that you can download and store on your mobile phone or computer. Each wallet is anonymous since neither names nor personal information is exchanged, which safeguards its users from identity theft.
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Paula P Plaza is an associate in the Litigation & Dispute Resolution Department of ACCRA Law Offices
Manila office: ACCRALAW Tower, 2nd Avenue corner
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