Virtual values are a sort of unregulated, virtual, decentralized, globalized currency, which can be usually traded and granted by people and generally acknowledged and used among the individuals in a selected virtual network. It has simply no physical commodity benefit and is generally traded in pairs as follows: one digital currency – the base foreign exchange; one virtual currency — the expression currency; and a fragmentary; sectional unit of the actual currency exchange. These currencies have no “legal tender”, face worth, and are not backed by virtually any collateral, such as real estate, rare metal, commodities, securities, and/or bank loans. Digital currencies are usually free from any government regulation and are generally generated and managed by distributed peer-to-peer applications (Drupal, Open Office, PHP, Java, etc . ). One of the most widely used electronic currencies are MasterCard, Visa, and PayPal.

As opposed to a conventional currency which can be issued by a central traditional bank, and backed either by physical belongings like currency itself, or by a promise to back them up (like gold) on delivery, virtual foreign currencies do not have anything to do with anything touchable. Virtual values are “Fiat currencies” since they are not backed by nearly anything tangible. This contrasts with the traditional budgetary system, in which a central financial institution can printer money as they wish, and employ it as “legal tender”. Virtual currencies are not created nor issued with a central loan company.

There are many rewards associated with the virtual currencies. Electronic money is highly efficient, with high transaction speed, little transaction expense and no cash laundering cost because there is no central bestyrer, and therefore no profit and loss. Transactions are generally quickly due to low cost of execution. Also because virtual foreign currencies are not guaranteed or pledged by any kind of collateral, there is absolutely no risk of arrears or scam, and hence zero loss in terms of money washing.