E-money vs Cryptocurrency – What’s the Difference?

This post was most recently updated on May 19th, 2023

Electronic money (e-money) is non-tangible money that may be found, for example, in your bank account or e-wallet and used to make online payments. In essence, it is an electronic currency substitute. Cryptocurrency is a decentralized digital currency that provides more options than electronic money or e-currency.

You may wonder why you need another opportunity to purchase things when you are currently content with paying using your credit card or e-wallet. Furthermore, you may mistake e-currency for cryptocurrency since they are both digital currencies. However, there are a few significant distinctions between these two kinds, which we shall discuss in this post.

Electronic money (e-money)

Payments may be made using e-currency (electronic cash or e-money), which is not physically present but exists in a bank account or online wallet. It’s a kind of electronic currency that may be used instead of fiat money.

The goal of establishing electronic currency is to allow individuals all over the globe to purchase items and services online, while also providing the ease of not carrying significant quantities of cash.

The digitization age brought about internet purchases, which, of course, required some payment. However, since this process is online and distinct from in-store purchases, the payment procedure must also be different. That’s when the financial system stepped in and invented electronic cash, electronic money, or e-currency. It should be noted that the e-currencies themselves may also differ in terms of technical performance and breadth of application.

The list of e-currencies and e-payment systems: Perfect Money, Payeer, PayPal, Advcash, Skrill, Epau, Payoneer, Payze, Webmoney. In the past, the very popular and widely used e-currency or payment system in the world was—Liberty Reserve. 

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Perfect Money e-wallet is a very popular e-currency today. This is due to the high anonymity of Perfect Money payments and the speed of transactions. Another good example is the WebMoney e-payment system, which is very popular in Russia.

Usually, e-currency exchangers (online money exchange platforms) are used for trading e-currencies. Often, e-currencies create their own Trust Scores, which help users find reliable e-currency exchangers. These numbers are formed from the amount of successful transactions. Perfect Money and Webmoney are good examples that have this type of Trust Score. If we look at the Perfect Money Trust Score, then XMLGold e-currency exchanger currently has the highest score.


Cryptocurrency is digital money that uses encryption to ensure its security. Encryption mechanisms govern the creation of currency units and the flow of payments. That’s right; the role of a central bank is essentially replaced by cryptography.

Cryptocurrencies are decentralized digital currencies that operate outside centralized banking systems and are thus immune to arbitrary regulation.

The world’s leading cryptocurrencies by turnover are currently: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BUSD), USD Coin (SDC), Ripple (XRP), Cardano ADA), Dogecoin (DOGE).

Differences Between E-Currency vs Cryptocurrency

Cryptography is a subset of digital money, and Digital money is a broader word. Cryptocurrencies are digital money, but digital money does not always have to be Crypto: it may be any national currency in electronic form.

1. E-currency Doesn’t Require Encryption:

 One of the primary distinctions that separate e-currency from cryptocurrency – cryptocurrencies use encryption. As a result, although both types of assets are transactable online, they perform in distinct ways.

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2. E-currency is Centralized, but Cryptocurrency is Decentralized:

Another contrast is that e-currencies are centralized, with dedicated authorities regulating all transactions. To make payment, you must first get authorization from a regulatory body. On the other hand, Crypto is decentralized; the community authorizes all trades, and there is no regulatory authority over transactions.

3. Different Levels of Anonymity:

 Cryptocurrencies provide different type of anonymity. When using e-currency, both the sender’s and the recipient’s information will be included in the transaction data; when using cryptocurrency, however, all that is required is the recipient’s wallet address, which does not reveal any personal information.

However, to purchase cryptocurrency, you must first go through the verification procedure. Therefore, cryptocurrencies cannot provide completely anonymous transactions as well.

However, it should be mentioned that nowadays there are e-currencies that surpass even crypto-currencies in their anonymity.

4. Crypto Offers Transparency of Transactions:

 Even if personal information is concealed for crypto transactions, you can check all the transfers for that wallet if you know the wallet address. Therefore, Crypto provides complete transparency by putting income streams on a public chain. In contrast, e-currency transactions are private, and it is impossible to spy on other users.

5. Different Regulatory Bases:

 Most nations have processes controlling the use of digital money, such as the European Union’s Directive 2009/110/EC, which lays out the legal basis for digital currencies. However, since cryptocurrency is still in its early stages, its legal status has yet to be determined in most nations.

6. Crypto Offers Irrevocable Transactions:

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 Transactions in cryptocurrency are permanently owing to its decentralized nature: no third party is engaged in the trade; thus, once you make a payment, you cannot halt or cancel it. Digital payment, on the other hand, vey often may be reversible. As a result, if an error occurs, you can contact the company and request that the transaction be canceled if there are valid reasons. Here, however, it depends on which e-currency or e-wallet you use. Customer service and policies may vary from company to company.


In a nutshell! E-currencies are e-cash that does not need any unique indigenous encryption technologies. On the other hand, cryptocurrencies are kept on a blockchain, and the coins themselves are housed in ‘wallets’ that provide far better levels of cyber protection. We hope we cleared up any misunderstanding you had before you began reading!

Sikander Zaman
writing is my profession, doing this from long time. writing for many online websites one of them is scoopearth







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