Cryptocurrency is an encrypted virtual currency that is not affiliated to a central bank or government system, though the currency comes either from a centralized or decentralized source.

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“…e-money is monetary value stored in an electronic device (computer, mobile phone, tablet, chip card) or on a server (cloud). Within this definition, we can divide e-money into two categories: centralized (that is, issued and often managed by a central issuer that assumes e-money as its liability) and decentralized (that is, based on a dispersed network of users, with no one user recognizing e-money as its liability).”(Johnson)

Johnson, Grahame, Pomorski, Lukasz, “Briefing of Digital Currencies” Speech from the Senate of Canada, Ottawa, Canada. April 2014. Web. 19th oct, 2016. http://www.bankofcanada.ca/2014/04/briefing-on-digital-currencies/

Gaydon, Carter, “What is cryptocurrency?”cryptocurrencynews.com.16th sept. 2014. Web. 19th oct. 2016. https://www.cryptocoinsnews.com/bitcoins-future-proof-of-stake-vs-proof-of-work/