Because a credit card is not electronic money, a credit card is an identification of the owner of electronic money.

Electronic currency is at this stage, most electronic currencies are based on existing physical currencies and have the functions of "value measurement" and "value preservation", and the difference between electronic currency and physical currency is It is established based on the prerequisite that the time can be exchanged at a ratio of 1:1.

Credit currency is a credit circulation tool provided by banks. Its own value is far less than its monetary value, and unlike proxy currencies, it is completely decoupled from precious metals and no longer directly represents any precious metals.

Strictly speaking, it is a currency in which consumers use the bank's online banking services to store value and make quick payments to the issuer of electronic money, and enable consumers to conduct transactions in electronic form through the media.

Extended information:

Credit currency currency form:

In commodity credit transactions, capitalists do not need to pay cash when purchasing a certain commodity, but only need to issue a loan Issue a debt note for regular repayment of the debt and give it to the other party.

At maturity, the holder can claim cash from the drawer based on the face value of the note. A promissory note that has not yet matured has the creditor's signature on the back indicating that it assumes the debt. The holder can also use it as a means of purchase or payment to purchase goods or repay debts.

In addition, the holder can also apply for discount from the bank for the promissory note that has not yet matured. The payee can deduct the interest for the period before maturity of the promissory note based on the interest rate.

Bank notes generated on the basis of the circulation of commercial bills and guaranteed by bank credit are also a kind of credit currency. Holders can use it instead of metal currency.

Banknotes are different from bank notes in that they are not prepared with commercial paper and gold and cannot be exchanged for gold. In fact, they can no longer be called credit currencies. It is issued under government decree. The government's indiscriminate issuance of banknotes to cover fiscal deficits often leads to inflation.

Baidu Encyclopedia—Credit Currency