Virtual currency merchant
What are the virtual currencies
now bitcoin has become the most famous virtual currency. Bitcoin virtual currency is a kind of currency obtained by complex calculation. Due to the limitation of the algorithm, the total amount of mining is 21 million, while the current mining amount has exceeded 11 million. Bitcoin has attracted the attention of Western Union, MoneyGram and paypal. It is reported that these services are evaluating whether users are allowed to use bitcoin on their respective platforms
Amazon coins
Amazon is one of the few large technology companies that independently develop virtual currency. In most cases, the virtual currency of these companies can only be used on their respective websites. Amazon just launched the Amazon coins service in May, which can now be used to buy games, apps and other digital content on the kindle fire platform, as well as on app stores and websites. You can buy 100 Amazon coins for $1, and you can get a discount for large purchases. For example, 1000 Amazon coins are sold for $9.50
It is difficult to avoid the typical risks related to the payment system. In a specific virtual community, virtual currency payment activities have evolved into a "real" payment system, facing the typical risks related to the payment system: credit risk, liquidity risk, operational risk and legal risk. The nature, scale and ration of these risks largely depend on the design of the system or the degree of lack of liquidity. It is difficult for the network virtual currency scheme to avoid or control these risks. According to the core principles of important payment system (CP) issued by the bank for International Settlements (BIS), the network virtual currency scheme does not conform to most of the contents of CP, and does not belong to the systemically important payment system. Therefore, it will not cause or transmit shocks to the global financial system. At present, there is no systematic risk in the network currency system outside these virtual communities
2. Lack of corresponding supervision and protection mechanism
in the real economy, the central bank plays the role of lender of last resort and there is no default risk, so it can take actions in the case of payment crisis or unpredictable liquidity shortage to avoid chain reaction. In the network virtual currency scheme, network currency is not the settlement asset. Because network currency simply depends on the credibility of the issuer, it can not be widely accepted as a means of payment, so network currency can not be regarded as a safe currency. In addition, commercial banks are required to accept prudential supervision, which reces the possibility of default. The security of money in commercial bank accounts is higher than that of network currency. A fundamental risk of network currency is that the settlement institution of network currency scheme is not subject to any supervision, no institution is responsible for its behavior, and there is no investor / depositor protection mechanism, which causes the user to bear all the risks
(4) risk of absence of supervision generally speaking, supervision lags behind the development of science and technology. The network virtual currency program was established in the late 1990s, but it was not until 2006 that some government agencies in the United States began to analyze these programs. Due to the lack of supervision and the anonymity, invisibility and difficulty in tracking of its transactions, the network virtual currency scheme is easily used by terrorist activities, fraud, money laundering and other illegal activities. At present, many government departments in many countries are considering whether to recognize or legalize these virtual schemes and bring them into the scope of supervision, so as to support the innovation of currency and payment forms, protect consumers' rights and interests and financial stability, and restrain the use of virtual currency schemes to engage in criminal activities. At present, the uncertainty of the legal status of the virtual currency scheme may also bring challenges to the government authorities
The reputation of Monetary Authority (central bank) is the key factor to determine the effectiveness of its policies, especially monetary policy. The public's trust in fiat money is closely related to the image of the central bank, which pays close attention to its reputation. The ECB will define reputation risk as the risk of deterioration of reputation, credit or public image. As the network currency scheme is related to money and payment, it is generally believed that it belongs to the responsibility of the central bank, so it is necessary to guard against the reputation risk it may bring to the central bank. Although in the case of small scale, the impact of the failure of the network currency scheme is limited, its high volatility and instability also increase the possibility of failure and attract extensive media coverage. If the network currency is allowed to develop continuously without regulation, the central bank may be regarded as dereliction of ty and affect its reputation Compared with the exchange value, the public has a higher recognition of the investment value of network virtual currency, and it is the transaction based on investment that accelerates the formation of virtual currency market. Like other investment markets, the participants of virtual money market will also face the potential losses caused by market risk, credit risk and policy risk. Take the bitcoin as an example: from 2009 to the beginning of 2010, bitcoin was worthless; In the summer of 2010, bitcoin trading began to enter the golden age. Because the supply was far less than the demand, the value of online trading began to rise. In early November, bitcoin was silent at 29 cents for many days, and then jumped to 36 cents; In February 2011, the bitcoin continued to appreciate, and its exchange rate with the US dollar reached 1:1; In 2013, the bitcoin price achieved a "Big Bang" growth, and hit US $1242 on November 29, 2013, exceeding the gold price of US $1241.98/oz in the same period. Fierce price fluctuations make market participants face huge speculative risksunlike mature capital markets such as stocks and bonds, bitcoin market is not deep enough, and it is mainly held in the hands of large investors with low degree of diversification. Bitcoin price is easily affected by large investors' trading behavior and controlled by speculators. At the same time, different countries have different attitudes towards bitcoin. Germany, the United States and other countries hold an open and supportive attitude. Thailand, Brazil and other countries regard bitcoin related activities as illegal. Every country's attitude and measures will have a significant impact on its price, especially in the short term
1. Bitcoin
since its release in 2009, bitcoin has become the most famous virtual currency. This virtual currency was developed by indivials or organizations under the pseudonym of "Nakamoto Tsung" (whose real identity has always been unknown), and is mainly used by online merchants. However, in recent years, some small physical merchants have begun to accept bitcoin payment. Through complex algorithms and a large number of computing resources, users can obtain bitcoin through "mining". Of course, they can also purchase bitcoin through exchanges or services like bitinstagnt and coinbase. The total amount of bitcoin that can be mined is about 21 million, while the current mining amount has exceeded 11 million. Bitcoin has attracted the attention of Western Union, MoneyGram and paypal. It is reported that these services are evaluating whether users are allowed to use bitcoin on their respective platforms
2. Litecoin
litecoin is based on bitcoin protocol, but supports faster transaction confirmation. The total number of litecains that can be mined in this system is 84 million, and the mining volume so far is about 20%. According to Charles Lee, the inventor of the virtual currency, the total value of litecoin currently in circulation is about $50 million. He said it was not clear that any physical merchants would accept payment from litecoin, but some host service providers had accepted the virtual currency
3. Freicoin
similar to litecoin, freicoin is also based on bitcoin protocol, but it is still in the early stage of development. According to mark friedenbach, one of the inventors of the virtual currency, the total number of freicoins that can be mined in the system is about 100 million, and the current mining volume is about 20%. The current number of concurrent users in freicoin network is about 100. At present, only a few small online merchants accept freicoin, and the inventor of the virtual currency is trying to promote it in a wider range
3. Ripple
ripple is not only a payment network, but also a virtual currency. The developer of ripple is opencoin, a Silicon Valley company. The company says its goal is to make ripple available to as many users as possible. Currently, the total number of ripples mined is about 100 billion, most of which are in the hands of opencoin. Chris Larsen, co-founder and CEO of opencoin, said opencoin is about to distribute 2000 ripples per user to about 40000 users, and plans to distribute about 50 billion ripples in the next few years. At present, consumers can register through ripple.com to get ripple wallet, and use the third-party service bitstamp to remit money from the bank account to use ripple wallet< 4. Amazon coins
Amazon is one of the few large technology companies that independently develop virtual currency. In most cases, the virtual currency of these companies can only be used on their respective websites. Amazon just launched the Amazon coins service in May, which can now be used to buy games, apps and other digital content on the kindle fire platform, as well as on app stores and websites. One dollar can buy 100 Amazon coins, while large purchases will get a discount. For example, 1000 Amazon coins are sold for $9.50
5. Well known virtual currency in China
there are many well-known virtual currencies in China, such as network currency of Internet company, Q currency of Tencent company, Q point and roll of Shanda company, u-coin meter ticket (used for igome game), chivalrous Yuanbao (used for chivalrous road game), grain silver (used for bixue Qingtian game), etc.
10 10, two major domestic payment giants Alipay and WeChat simultaneously voicing, prohibiting the use of platforms in virtual currency transactions. Why did Alipay and WeChat voice at the same time? The reporter understands that this may be related to a dynamic trend of a virtual trading platform in the near future. P>
Alipay and WeChat: once found and resolutely retreated,
has repeatedly banned payment agencies to provide virtual
services. In fact, the central bank and its branches have repeatedly requested payment agencies not to provide services for virtual currency transactions.
as early as the end of 2013, the central bank and other ministries and commissions issued the notice on preventing bitcoin risks, which made it clear that all financial institutions and Payment institutions should not price procts or services with bitcoin, buy or sell bitcoin or act as central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, Shall not directly or indirectly provide customers with other services related to bitcoin, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin and RMB and foreign currency exchange services; Carry out bitcoin storage, custody, mortgage and other services; Issuing financial procts related to bitcoin; Take bitcoin as the investment target of trust, fund, etc
in September 2017, the central bank and other seven departments jointly issued the announcement on preventing the financing risk of token issuance, which stipulates that financial institutions and non bank payment institutions shall not directly or indirectly provide procts or services such as account opening, registration, trading, clearing and settlement for token issuance financing and "virtual currency"
similarly, the business management department of the central bank issued a notice in January 2018, requiring all legal person Payment institutions under its jurisdiction to carry out self inspection and rectification work in their own units and branches, forbidding to provide services for virtual currency transactions, and taking effective measures to prevent payment channels from being used for virtual currency transactions
there is no need to mine the currency of POS proof mechanism, and there is no need for a miner. It is mined through wallet, and the good interest is almost the same.