This document presents on virtual currency exchange. It defines virtual currency as money that exists electronically without a physical form. There are four main types of virtual money systems: centralized systems like PayPal that sell currency directly; decentralized systems like Bitcoin that operate through peer-to-peer networks; mobile sub-systems and digital wallets like Apple Pay; and offline anonymous systems where merchants can collect currency from users and deposit it later. While digital currency reduces costs compared to physical money, security and stability concerns remain that need to be addressed through legal guidelines and cooperation between financial institutions and technology companies.

1. A presentation on
virtual currency exchange
Presented by- Sambit Kumar Swain
1

2. What is virtual currency ?
 Virtual money is money which exists only in banking
computer systems and is not held in any physical form.
 Virtual money, or e-money, is the money balance recorded
electronically on a stored-value card.
 It may refers to several systems which enable a buyer to
pay electronically by transmitting a unique number (called
digital certificate) similar to a banknote number.
 Both virtual currencies and cryptocurrencies are types of
digital currencies, but the converse is incorrect.
2

3. Different types of virtual money…
Virtual Money includes four different systems
namely:
1. Centralized Systems
2. Decentralized Systems
3. Mobile sub-systems/Digital Wallets
4. Offline Anonymous Systems
3

4. Centralized Systems
 Many systems—such as PayPal, eCash, Web
Money, Payoneer, cashU, and Hub Culture's Ven
will sell their electronic currency directly to the
end user.
 Other systems only sell through third party digital
currency exchangers.
4

5. Decentralized Systems
 Decentralized e-money is stored and flows through a peer-to-peer
computer network that directly links users, much like a chat room.
 No single user controls the network.
 Some decentralized types:
 Bitcoin
 Monero
 Litecoin
 Ripple Monetary System
 Dogecoin
 Nxt
5

6. Mobile sub-systems/Digital Wallets
 A number of electronic money systems use contactless payment
transfer in order to facilitate easy payment and give the payee
more confidence in not letting go of their electronic wallet during
the transaction.
 In 1994 Mondex and National Westminster Bank provided an
'electronic purse' or to residents of Swindon
 On September 9th, 2014 Apple Pay was announced at the iPhone
6 event. In October 2014 it was released as an update to work on
iPhone 6 and Apple Watch. It is very similar to Google Wallet, but
for Apple devices only.
6

7. Offline Anonymous Systems
 It can be done ‘offline’.
 In this electronic money system, the merchants do not
need to have interaction with banks before receiving
currency from the users. Instead of that, the merchants
can collect spent money by users and deposits the
money later to the bank.
 The merchant can deliver his storage media in bank
for exchanging the electronic money to cash.
7

8. Conclusion
 Digital currency reduces overall cost of operation
drastically compare to paper money.
 As the technology is new, there are some security and
stability concern about “E-money” which are controllable in most
of the cases.
 There should be some legal guidelines and law about this to
prevent money laundering and other unethical uses of digital
currency.
 Banks, financial intuitions and governments should come forward
and work along with the tech-giants such as Google, apple,
Microsoft, face book etc. to develop the revolutionary but secured
and stable transaction system using “digital currency.”
8

9. Thank You…
9