Understand
the Economy and Banking

Cryptocurrencies are digital, decentralised currencies, based on cryptographic technologies to ensure the security of transactions and to control the creation of new units.

Decentralisation
Cryptocurrency is not issued or controlled by any central authority, such as a central bank or a government. The network is managed by a community of users through a distributed system of nodes.

Security
Enhanced encryption is used to protect transactions and wallets. Transactions are generally anonymous, guaranteeing the privacy of users.

Blockchain
Most cryptocurrencies use a blockchain, that is, a public and immutable register that records all transactions transparently. Each block contains a set of transactions and a cryptographic link to the previous block.

Peer-to-peer (P2P) transactions
Cryptocurrency allows direct transactions between two parties, without intermediaries. This reduces transaction costs and increases their speed.

Limited supply
Many cryptocurrencies have a limited supply, which means that there is a maximum number of coins that can be created. For example, Bitcoin has a limit of 21 million units.

Portability and inalterability
Cryptocurrencies can be easily transferred between users through the internet. They can be divided into small fractions, facilitating transactions of any amount. In addition, many cryptocurrencies are developed as projects.

So-called "stablecoins" are a type of cryptocurrency designed to maintain a stable value against a reference asset (dollar, euro, etc.), a raw material (gold, oil, etc.) or another type of asset.

Non-guaranteed cryptocurrencies, called non-collateralised cryptocurrencies, are cryptocurrencies that are not guaranteed by saleable goods if the debtor does not fulfil their obligation. Their value is mainly determined by demand and supply on the market, as well as by user confidence in the system and the underlying technology.

Advantages of cryptocurrency
Accessibility: they allow the financial inclusion of individuals who do not have access to banking services.
Transparency: Transactions are publicly visible on the blockchain.
Speed: fast transactions, especially for international transfers.
Cost: lower transaction costs than conventional systems.

Disadvantages of cryptocurrency
Volatility: the value of cryptocurrency can be highly volatile.
Regulation: cryptocurrency trading markets are less or not at all regulated and trading may not close.
Security: risks associated with cyberattacks and fraud.
Acceptance: Not all companies and merchants accept cryptocurrency.

MICAR (Markets in Crypto-Assets Regulation)
is the regulation approved by the European Union aimed at establishing a uniform regulatory framework for cryptocurrency markets.