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Part II Digitalization of Money and Finance, 10 Payment in Virtual Currency: The Legal Challenge

Benjamin Geva

From: International Monetary and Banking Law post COVID-19

Edited By: William Blair, Christos Gortsos, Chiara Zilioli

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 19 April 2024

Currency — Concept of money — Exchange control — Financial system — International financial system — Monetary system

This chapter considers legal issues of paying with virtual currency. It explores the present monetary system and the emergence of digital currencies. It addresses virtual currencies in the broader context of private currencies and highlights the difference between a self-anchored virtual coin whose value tends to fluctuate and a stablecoin. Addressing control and its transfer as functional equivalent of possession and delivery the chapter assesses that virtual currencies do not pose a significant concern to designers and executors of monetary and payment systems. The chapter concludes arguing that virtual currencies should be addressed as part of broader legislation governing digital (or virtual) assets. Outlawing their monetary use as a response to their inherent risks is rejected in favour of regulation as part of a broader legislation governing digital (or virtual) assets

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