VIRTUAL CURRENCY: EVOLUTION, TECHONOLOGY, PERSPECTIVES

In this paper we aim to present the theoretical foundations of virtual currencies, distinguishing them from legal tender, and to explore the blockchain technology that underpins their creation. We classify the existing virtual currencies into three categories (cryptocurrencies, stablecoins, and Central Bank Digital Currency), and analyze their characteristics and market evolution. We also present the evolution of popular cryptocurrencies, bitcoin and Ethereum, underline their market dynamics, historical price trends and mining distribution. Moreover, we assess the implications of these digital currencies on the economy and society with their potential and challenges. Our findings illustrate a substantial shift in the attitude of central banks, with many considering the issuance of their own digital currencies in response to the growing popularity of decentralized alternatives. In spite of their actual promise, virtual currencies face certain limitations such as high volatility and regulatory hurdles. Our study underscores the novelty and scientific contribution of virtual currencies and emphasizes their transforming potential in the current financial landscape.