Electronic Money vs Cryptocurrency – What’s The Difference?

E-money, or electronic money, is a digital currency that may be stored in e-wallets and used to make purchases via the Internet. Unlike traditional electronic money or e-currency, which is centralized (regulated by the government and institutions), meanwhile, cryptocurrency operates independently.

Suppose you’re happy using your credit card or digital wallet to make purchases online. In that case, you may question why you’d want another option.

Since both e-currency and cryptocurrency are digital currencies, they may be easily confused with one another. In this article, we’ll go over the key differences between the two types and why you would choose one over the other. 

Electronic Money (E-Money):

Electronic currency (sometimes known as “electronic money” or “e-money”) is a form of payment that is not printed nor held in use but instead is stored digitally in a bank account or a user’s online wallet. It’s an alternative to traditional cash that’s stored and transacted digitally.

The purpose of electronic money is to facilitate global trade by eliminating the need for large amounts of cash to be physically transported at all times during online transactions.

The digital age emerged from online shopping, which requires payment. Online transactions are different from in-store purchases and need a unique payment method.

Because of this need, the financial sector developed electronic money, often known as electronic cash, e-currency, or digital currency. It is important to remember that e-currencies might vary in terms of their underlying technology’s performance and the scope of their use.

Perfect Money, PayPal, Advcash, Skrill, Epay, Payoneer, Payeer, Payze, and Webmoney are among the electronic currencies and payment methods available. In the past, Liberty Reserve was the most commonly used electronic money or payment system throughout the globe.

These days, the Perfect Money e-wallet is one of the most widely used forms of electronic currency. It occurs because of the rapidity and complete privacy of Perfect Money transfers. WebMoney, a widely used electronic payment system in Russia, is another example.

E-currency trading is often conducted via specialized websites called “exchangers.” To aid its consumers in finding trustworthy e-currency exchangers, several e-currencies have developed their Trust Scores. The sum of all completed transactions is the basis for these statistics.

Examples of such a Trust Score are Perfect Money and WebMoney. XMLGold is the leading electronic currency exchange with the highest Perfect Money Trust Score. 

How to buy Perfect Money with Tether: https://www.youtube.com/watch?v=yfYRb4vGIvI


 Cryptocurrency is a secure digital currency that employs cryptography as an added layer of protection. Encryption methods govern the generation of currency units and the transmission of payments.

Cryptocurrencies are digital currencies issued and managed independently of any central authority or banking system.

Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BUSD), USD Coin (SDC), Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) are the most traded cryptocurrencies today.

Differences Between E-Currency vs Cryptocurrency

Cryptography falls within the digital money category, which is a more general term. Cryptocurrencies are a kind of digital currency; however, any national currency may exist in a digital form as well.

1. E-currency Doesn’t Require Encryption

Among the most notable differences between e-currency and cryptocurrency is the usage of Encryption by the latter. Both sorts of assets may be traded digitally, but they operate differently.

2.E-Currency is Centralized, but Cryptocurrency is Decentralized

To add another difference, e-currencies are centralized, with certain agencies overseeing all financial dealings. Getting permission from a governing authority before making a payment is necessary. Conversely, Crypto is decentralized, meaning that the community authorizes all trades, and no central authority regulates them.

3. Different Levels of Anonymity

The anonymity offered by cryptocurrencies is unique. In the case of electronic money, both the sender’s and the recipient’s information will be recorded in the transaction log. However, just the recipient’s wallet address is needed with cryptocurrencies, and this does not expose any personal information.

However, the verification process must be completed before any bitcoin purchases may be made. Due to this, cryptocurrency transactions cannot be made entirely anonymous.

It’s important to note that there are already e-currencies that are even more anonymous than cryptocurrencies.

4. Crypto Offers Transparency of Transactions

Knowing the wallet’s address lets you see all of its transactions, even if your identity is hidden during crypto transactions. As a result, Crypto offers full transparency by publishing revenue sources on a public chain. When using electronic money, on the other hand, all transactions are confidential and cannot be monitored by other parties.

5. Different Regulatory Bases

Directive 2009/110/EC of the European Union sets forth the legal framework for digital currencies and is an example of a method used by most countries to regulate the usage of digital money. Since Bitcoin is still in its youth, its legal status has yet to be defined in most countries.

6. Crypto Offers Irrevocable Transactions

Because Bitcoin is decentralized, no central authority is involved in a transaction; therefore, once a payment is made, it cannot be reversed. In contrast, digital payments are often reversible.

Because of this, you may get in touch with the firm and ask for a refund if a mistake is made. However, the specifics depend on the electronic money. Some businesses may have more relaxed regulations or friendlier customer service representatives.


Electronic money, also known as an e-currency, does not need any locally developed cryptographic system. On the other hand, cryptocurrencies are stored on a blockchain, and the coins themselves are stored in “wallets” that provide far higher levels of cybersecurity. We hope that through this article we helped you understand the digital currency industry a little better.

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