Digital currency has appeared not so long ago. It began to appear in the general public more than three years ago. However, the turnover of electronic funds is growing rapidly. Such money is a convenient financial instrument. They are especially often used to pay for purchases on the Internet, and they also pay wages to freelancers. From the logical conclusions follows the question: "Who controls the circulation of electronic currency?" Lets talk about this in more detail.
Until the end of 2010, the movement of digital currency was not controlled by anyone. For the first time, the issue of regulating money was raised in 2011, at the same time a legislative act was adopted that clarified the rights and obligations of payment service operators. The reason for this need should be sought in the growth in the number of web users who use virtual analogs of fiduciary monetary units to carry out financial settlements online. According to experts, in Russia alone, the turnover of electronic money has increased 5 times in one year.
All developed and developing countries are closely monitoring digital media movements. Government bodies are trying to optimize this process to the level of complete subordination to the financial system of each country in the world. At the moment, there are still some questions at the stage of control implementation. As for real money, their circulation is fully established and subordinate to the control of the official authorities and various government regulators.
If we look at digital funds from the perspective of the international community, then we can highlight some of the advantages of electronic currency:
Keeping money on digital aggregates.
Issue of funds upon receipt of cash on the account. Thus, the mechanism for the circulation of electronic money is being established.
The issuer is the payment system itself.
Acceptance of currency is possible by all companies, except for the issuer.
In order to optimize the process, the payment service is divided into 2 categories: digital money on plastic cards and digital funds in the global network. Funds on plastic cards have a material essence, since cards are a carrier with a chip built into them.
Digital money has no physical medium and circulates virtually on the network. The turnover of funds does not go beyond the virtual web. Some payment resources issue cards with a certain fixed amount. With their help, you can only replenish your virtual wallet account.
The circulation of electronic money in Europe is at a high level. However, the authorities there, too, are trying to closely monitor this process. The reason for the governments interest is clear. Where big money is spinning, increased control is required. After all, the subordination of the circulation of digital controls promises to the authorities considerable financial benefits, which settle in the pockets of online entrepreneurs.
Although clients of the virtual network are not very worried about the future fate of their money, because no country in the world clearly regulates legislative acts on the issue of functions that are assigned to electronic means.
Consider the reasons that hinder the introduction and circulation of electronic currency in the created economy:
Lack of a clear legal framework on the use of digital currency.
Differences of opinion between payment systems and central banks.
Vulnerable defense system.
Some experts agree that virtual money does not fit well with the established financial system. Therefore, the experience of some developed countries on the successful introduction of digital means into the countrys economy should be adopted by the rest of the states.
At the moment, it is planned to adopt and regulate strict norms in the Russian Federation and Europe on the circulation of electronic money. In 2014, proposals were made to the State Duma of Russia to limit the circulation of confidential money in the system. In the spring of the same year, a federal law was adopted, which was aimed at protecting against the legalization of money laundering that was obtained by dishonest means.
If the established limit for the transfer of electronic currency exceeds 100 thousand rubles, then this process is necessarily monitored by high-ranking organizations. Without user verification, the limit is reduced to 15 thousand rubles. The reason for the introduction of a mechanism to control the circulation of electronic money was the growth of fraudulent activities on the global web. In 2015 alone, more than 50 thousand illegal actions were committed by participants in the payment resource.
As you know, where big money is spinning, there is a place for law enforcement agencies and fraudsters. Hackers are constantly developing new ways to attack users electronic wallets. The low confidence of some network participants in virtual currency is due precisely to the vulnerability of the system.
To protect funds and increase the turnover of electronic money in Europe and the Russian Federation from careless geniuses, several methods have been developed to combat them, such as a technical method (encoding information, passwords, client authentication in the network), functional (setting restrictions, updating software) and legal (regulations on the use of funds and liability for violations of the law).
Investing in the field of virtual currency is also rapidly developing. Despite some imperfection of the security system. Many payment resources offer their members profitable ways to store funds, use them and turn over electronic currency. The multi-currency wallets allow clients to accumulate their funds in any popular currency (dollar, euro, ruble).
The EU is trying to make the process of currency circulation the most transparent and accountable to the state. It is noteworthy that a Bureau has been created in Europe, which is designed to protect the rights of consumers. It is empowered to investigate various types of companies that have violated the law.
Worldwide AML / CFT regulations cover sites whose work is related to payments. When the limit of electronic money turnover, which is established by these norms, is exceeded, companies are required to monitor all processes and detect suspicious transactions.
In Europe, developers of payment resources are required to obtain a license of the established form to start their activities. Their work is regulated by the body of the country in which the main office of the service is located. In order to start a business, the company must have start-up capital on its accounts. There are no restrictions on the use of virtual currency. Money can be spent throughout the EU.
Some skeptics do not fully believe in improving the electronic money circulation mechanism and replacing (partial or complete) traditional money with digital means in the near future. Although the prospect of replacing fiduciary money is pretty impressive. The development of innovations in the field of programming has led to the emergence of electronic money, which is rapidly gaining momentum in popularity. Their functions are similar to those of real analogs, however, the possibilities are broader.
Large companies in Europe, CIS countries, Russia are already using e-currency in their settlements with partners. Due to the high turnover of funds, developers of payment systems can afford to set fairly low commission fees. The circulation of electronic money in Europe is distinguished by solid volumes. The client wins by saving money on commissions, and payment resources - on the massive use of their service.
Thus, virtual wallets play the role of a bank account, which is available without leaving home, in every part of the planet, with minimal fees and maximum transaction speed.