Is the Ğ1 a 'virtual' currency?

Category Understanding the basics

Ğ1 actually exists, as well as the thousands of transactions made by its users since its creation on March 8th 2017.

The fact that the Ğ1 that are used are stored on computers doesn’t make them virtual (by virtual we're referring to both digital as well as unreal/non-existent).

95% of the circulating euros only exist in digital form. If you need proof, count the actual money in your wallet, and compare that to the total amount of money you actually own: do your banknotes and coins represent even 5% of the total amount of money you possess?

Of course, under no circumstances would all the money that appears on the current savings account balances exist in the form of banknotes or coins, let alone of gold bars! Is it however ‘virtual’?

You understand well that your account balance is the amount of money that the bank owes you. This doesn’t mean they actually possess this money... An interesting point to ponder. Upon closer inspection, maybe we should be calling the current fiat currency monetary system as a 'virtual' monetary system!


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le 03.10.2022 à 13:43:11
Translated by Aurélie
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