which will be discussed in detail in Section \[sec:value\].

The distinct nature of crypto-currency is apparent in its comparison to centralised virtual currency above, but also, as we will see here, to e-money. The issuance mechanism in Bitcoin is fixed, with the coin generation process and final available currency dictated by a mathematical protocol. E-money is intrinsically linked to the underlying fiat currency, whose issuance is controlled by a central banking authority. In addition, in the current absence of the requirements of ‘know your customer’ that e-money transactions tend to require, one can have a more anonymous interaction with crypto-currency. In general it is acknowledged that anonymity is perhaps greater with crypto-currencies, as not all companies directly follow the Financial Action Task Force standards with regard to customer identification.

Another key point that can distinguish the utility of crypto and virtual currencies relates to the environments they operate in. This is becoming an important feature in terms of accessibility, at present Bitcoin is limited to people with internet connections. This turns out to be significant as it precludes its widespread uptake in the third world and developing countries, where e-money has been very popular in mobile and paging service networks.

