Non Bank Digital Currency Payment Systems: Regulations & Growth

American Chronicle Non Bank Digital Currency Payment Systems: Regulations & Growth
Digital currency is often described as money or value that circulates online but does not circulate through a bank or recognized financial institution. Many digital currency companies emerged in the mid to late 1990's with names such as DigiCash, CyberCash, eCash and e-gold. During the 1990's these privately issued digital tokens representing value were not recognized as government issued 'money'. Consequently, the creation and transfer of the units was not considered a regulated banking operation. This was true for almost a decade.

The 'digital currency' unit of the 1990's was an anonymous digital token which could be transferred from one account to another within a closed system. These systems could be described as large accounting programs where one account is debited and another account receives the credit. What makes these systems so special is that from the early 1990's digital currency granted anyone in any country, instant & easy access to the world of online commerce.