Cabias, Clint Sheen I.

BSA 3

FINMARK - 542

Cryptocurrency

What is Cryptocurrency?

Cryptography is used to safeguard and authenticate transactions, as well as to

regulate the generation of new units, in digital or virtual currencies known as
cryptocurrencies. Cryptocurrency is decentralized, meaning it runs without the aid of a
central bank or a government, and all of its transactions are listed on a blockchain, a
type of open ledger.

In order to validate transactions and add new blocks to the blockchain, the
process of "mining," which creates cryptocurrencies, entails solving challenging
mathematical equations. Very secure, open, and impervious to fraud and hacking, these
are the features of this method.

There are now thousands of different cryptocurrencies in use, each with its own
distinct features, uses, and values. Bitcoin is the first and most well-known
cryptocurrency. Litecoin, Ripple, and Ethereum are a few of the most well-known
cryptocurrencies.
Difference of Cryptocurrency to Legal Tender and Gcash

Cryptocurrency vs. Legal Tender

Legal tender and cryptocurrency are distinct in the following ways:

 Status as Legal Tender: A form of money that is sanctioned by the law as

acceptable for paying taxes and debts is known as legal tender. The majority of
nations do not recognize cryptocurrencies as legal money, on the other hand.
Even though El Salvador and other nations have made Bitcoin legal tender, it is
still not widely used.

 Central Authority: A government or central bank, for example, usually issues and
regulates legal money. Cryptocurrencies, on the other hand, are decentralized
and are not governed by a single entity.

 Physical Form: Unlike cryptocurrencies, which only exist in digital form, legal
currency exists in physical forms like banknotes and coins.

 Volatility: Compared to traditional currencies, cryptocurrencies are more prone to

sudden drops in value due to changes in the market and other causes.

 Acceptance: While cryptocurrencies are not yet widely recognized and frequently
call for specific infrastructure to utilize, legal cash is typically accepted as a
means of payment by businesses and individuals.

 Security: Compared to physical legal money, which may be copied or stolen,

cryptocurrencies are more secure because they are protected by cutting-edge
cryptographic technology.
 Nevertheless, despite some minor similarities, the structure, administration, and
adoption of cryptocurrencies and traditional money are very different.

Cryptocurrency vs. Gcash

A decentralized digital money that functions without a central bank is

cryptocurrency, like Bitcoin or Ethereum. It is based on blockchain technology, which
employs encryption to safeguard and validate transactions as well as regulate the
creation of new units. Bitcoin can be used as a medium of exchange, a means of money
transmission, or an investment in speculation.

On the other hand, Gcash is a financial services and mobile wallet app that is
accessible in the Philippines. It is a centralized digital currency that the Philippine
Central Bank regulates and is backed by a Philippine bank. Via Gcash, customers may
transfer money, pay bills, and purchase goods and services using their mobile devices.
It can also be connected to an actual debit card, enabling users to make ATM
withdrawals.

In conclusion, although Gcash is a centralized digital currency that is backed by a

bank and governed by a central bank, cryptocurrency is a decentralized digital currency
that works without a central bank.

Philippine Current Cryptocurrency Scene

The bitcoin market in the Philippines has been rapidly expanding in recent years.
The central bank of the nation, Bangko Sentral ng Philippines (BSP), has taken action to
control the cryptocurrency market after seeing the potential advantages of the
technology. The BSP issued a circular in 2017 that described virtual currencies as
"digital representations of value that can be used as a medium of exchange, unit of
account, or store of value," and that also mandated that exchanges for virtual currencies
register with the BSP and put anti-money laundering and counter-terrorism financing
measures in place.

Several bitcoin exchanges have established themselves in the Philippines as a

result of this regulated structure. In the nation, prominent exchanges including Coins.ph,
PDAX, and BloomX operate. Users of these exchanges can purchase and sell a number
of cryptocurrencies, including Ripple, Ethereum, and Bitcoin, among others. They also
provide extra services like remittance services and mobile wallets.

The blockchain technology—the technology at the heart of cryptocurrencies—and

its possible uses have also being studied by the Philippine government. The Philippine
Blockchain Initiative was introduced in 2018 by the Department of Science and
Technology (DOST), with the goal of encouraging the use of blockchain technology
throughout the nation's many industries.

According to the most

recent report from US blockchain
research company Chainalysis,
the Philippines placed second out
of 146 nations in the 2022 Global
Crypto Adoption Index. The index
identifies the regions where the
most people are investing the
most of their funds in
cryptocurrencies. The Philippines
came in first place in the area,
surpassing countries like
Thailand, China, and Indonesia.
With regard to the total index,
Vietnam came out on top.

As of the current year, a total of

6.99 million Filipinos, equivalent to
6.13% of the population, were found
to have a cryptocurrency account,
according to the data. This puts the
Philippines in the top 10 countries
globally, alongside the United States,
Vietnam, Pakistan, South Africa,
Nigeria, Kenya, Brazil, Thailand, and
Indonesia.
 CoinJournal’s Global Crypto Ownership Rankings ranked countries based on the number
of crypto owners as a percentage of their population. The rankings revealed the countries with
the highest proportions of crypto owners and the highest numbers of crypto owners around the
world.