One way to understand a little about virtual currency is to first understand fiat
currency. Fiat currency is any legal tender designated and issued by a
central authority that people are willing to accept in exchange for
goods and services because it is backed by regulation and because they
trust this central authority.
E-money is an electronic component of that fiat currency systems, and still trades in familiar units such as dollars, yen, euros, pesos, or else . E-money is typically regulated and controlled within the framework of a government’s central banking system.
The customers of
such transactions are identified under Financial Action Task Force
standards and as a result are not anonymous. Well that is where we come in.