Editing Digital currency (section)

=== Centralized systems ===
{{Main|Electronic funds transfer}}

Currency can be exchanged electronically using [[debit card]]s and [[credit card]]s using [[electronic funds transfer at point of sale]].

==== Mobile 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" to residents of [[Swindon]]
* In about 2005 [[Telefónica]] and [[Banco Bilbao Vizcaya Argentaria|BBVA Bank]] launched a payment system in [[Spain]] called Mobipay<ref>{{cite web|url=http://www.fujitsu.com/es/about/resources/case-studies/mobipay_en.html|title=Mobipay - Fujitsu Spain|access-date=23 May 2017|archive-date=26 March 2017|archive-url=https://web.archive.org/web/20170326000919/https://www.fujitsu.com/es/about/resources/case-studies/mobipay_en.html|url-status=dead}}</ref> which used simple [[short message service]] facilities of [[feature phones]] intended for pay-as-you-go services including taxis and pre-pay phone recharges via a BBVA current bank account debit.
* In January 2010, [[Venmo]] launched as a mobile payment system through SMS, which transformed into a social app where friends can pay each other for minor expenses like a cup of coffee, rent and pay a share of the restaurant bill when one has forgotten their wallet.<ref>{{Cite web|url=http://kortina.net/essays/origins-of-venmo/|title=Origins of Venmo|access-date=2015-04-23}}</ref> It is popular with college students, but has some security issues.<ref>{{Cite web|url=http://www.slate.com/articles/technology/safety_net/2015/02/venmo_security_it_s_not_as_strong_as_the_company_wants_you_to_think.html|title=Venmo Money, Venmo Problems: The mobile-payment service is trendy, easy to use, and growing fast. But is it safe? |date=26 February 2015 |first=Alison |last=Griswold |work=Slate}}</ref> It can be linked to a bank account, credit/debit card or have a loaded value to limit the amount of loss in case of a security breach. Credit cards and non-major debit cards incur a 3% processing fee.<ref>{{Cite web|url=https://venmo.com/about/fees/|title=Venmo pricing}}</ref>
* On 19 September 2011, [[Google Wallet]] released in the United States to make it easy to carry all one's credit/debit cards on a phone.<ref>{{Cite web|url=https://www.cnet.com/news/this-day-in-tech-google-wallet-launches/|title=This Day in Tech: Google Wallet launches|date=19 September 2011 |work=CNET |first=Boonsri |last=Dickinson}}</ref>
* In 2012 [[Ireland]]'s [[O2 (Ireland)|O2]] (owned by [[Telefónica]]) launched Easytrip to pay [[road tolls]] which were charged to the mobile phone account or prepay credit.<ref>{{cite web|url=http://www.thepaypers.com/mobile-payments/easytrip-o2-launch-mobile-toll-payments-service-in-the-republic-of-ireland/749223-16/abstract|title=Easytrip, O2 launch mobile toll payments service in the Republic of Ireland |date=15 November 2012}}</ref>
* The UK's [[O2 (United Kingdom)|O2]] invented O2 Wallet<ref>{{cite web|url=http://www.o2.co.uk/money|title=O2 - O2 money - The O2 Wallet service closed on 31st March 2014}}</ref> at about the same time. The wallet can be charged with regular bank accounts or cards and discharged by participating retailers using a technique known as 'money messages'. The service closed in 2014.
* On 9 September 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.<ref>{{Cite web|url=https://www.theverge.com/2014/9/9/6127587/apple-watch-works-with-apple-pay-to-replace-your-credit-cards|title=Apple Watch works with Apple Pay to replace your credit cards|date=9 September 2014 |work=The Verge |first=Dante |last=D'Orazio}}</ref>

==== Central bank digital currency ====
A [[central bank digital currency]] (CBDC) is a form of universally accessible digital money in a nation and holds the same value as the country's paper currency. Like a [[cryptocurrency]], a CBCD is held in the form of tokens. CBDCs are different from regular digital cash forms like in online bank accounts because CBDCs are established through the central bank within a country, with liabilities held by one's government, rather than from a commercial bank.<ref>{{Cite book |last1=Bordo |first1=Michael D |title=Central Bank Digital Currency and the Future of Monetary Policy |last2=Levin |first2=Andrew T |publisher=National Bureau of Economic Research |year=2017}}</ref> Approximately nine countries have already{{When|date=June 2023}} established a CBDC, with interest in the system increasing highly throughout the world. In these nations, CBDCs have been used as a form of exchange and a way for governments to try to prevent risks from occurring within their [[financial system]]s.<ref>{{Cite web |title=Countries Developing a Central Bank Digital Currency (CBDC) |url=https://www.investopedia.com/countries-developing-central-bank-digital-currency-cbdc-5221005 |access-date=2022-12-09 |website=Investopedia |language=en}}</ref>

A major problem with central bank digital currencies is deciding whether the currency should be easily trackable. If it's traceable, the government has more control than it currently does. Additionally, there's a technical aspect to consider: whether CBDCs should be based on tokens or accounts and how much anonymity users should have.<ref>{{Cite book |url=http://dx.doi.org/10.1108/ijbm |title=International Journal of Bank Marketing |publisher=Emerald|doi=10.1108/ijbm }}</ref>