Virtual currency and electronic money are different from each other.
According to the European Central Bank's definition, virtual currency is “a digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money”.
Electronic money, on the other hand:
is a concept defined in Turkish law through the legislative work carried out by the BRSA. It is monetary value that is issued in return for funds accepted by the issuing institution, stored electronically, used to carry out the payment transactions defined in Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions, and accepted as a means of payment by natural and legal persons other than the institution that issues the electronic money.
Virtual currency is not tied to a central authority or an institution. Electronic money, on the other hand, is tied to an electronic money institution.
Differences for the user
Electronic money is covered by an institution's redemption commitment and is denominated in an official currency. Virtual currencies have no such commitment, and their value is determined by supply and demand in the market.
For this reason, the price of a virtual currency can fluctuate greatly, while electronic money behaves like a balance whose amount does not change. Investors and users should know this difference.
Regulations on virtual currencies differ from country to country and may change over time.
