Posted on: 16. April 2018

Off-Ledger Currency

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What is Off-Ledger Currency?

First of all, the term Off-Ledger Currency has to do with the currencies in general. All currencies that can be used with but weren’t created for a specific digital wallet are used as off-ledgers. In addition to cryptocurrency, this term also includes money spent by nation states.

Examples of this in the real world include the Japanese yen, the US dollar, as well as the euro. Brand new to the world of cryptocurrency and unsure what a digital wallet is?

A digital wallet simply serves as a way for you to manage transactions and send money. Wallets have to be downloaded in part, but can often be used online as well. As a rule, registration is required to access all functions of a wallet.

Examples of Off-Ledger Currencies

A classic example of an off-ledger currency is the euro, issued by the European Central Bank. It was designed to create a single currency for the whole of Europe. However, it wasn’t invented with exclusivity for wallets in mind.

At the same time however, it is accepted as a means of payments by various different e-wallet providers. It is only outperformed in terms of acceptance by the US dollar, often seen as the leading global currency.

Well-known examples in the cryptographic field include Ethereum, along with the pioneering cryptocurrency, the Bitcoin. Off-ledger currency is the name for a currency that is available for transactions on distributed wallets.

These virtual wallets allow for easy management of financial transactions and are occasionally insured by providers.


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