Editing Currency (section)

== Alternative currencies ==
{{main|Alternative currency}}
{{more|Cryptocurrency bubble}}
Distinct from centrally controlled government-issued currencies, private decentralized trust-reduced networks support alternative currencies (such as [[Bitcoin]] and [[Ethereum|Ethereum's ether]], which are classified as [[cryptocurrency]] since [[wikt:transference|transference]] transactions are assured through [[cryptography|cryptographic signatures]] validated by all users. With [[stable coin|few exceptions]], these currencies are not [[Asset-backed security|asset backed]]. The [[Commodity Futures Trading Commission|U.S. Commodity Futures Trading Commission]] has declared Bitcoin (and, by extension, similar products) to be a commodity under the [[Commodity Exchange Act]].<ref>{{cite web |title=Bitcoin Basics |url=https://www.cftc.gov/sites/default/files/2019-12/oceo_bitcoinbasics0218.pdf |website=Commodity Futures Trading Commission |access-date=9 September 2023}}</ref>

There are also [[brand]]ed currencies, for example 'obligation' based stores of value, such as quasi-regulated BarterCard, Loyalty Points (Credit Cards, Airlines) or Game-Credits (MMO games) that are based on reputation of commercial products.<ref name=TEDbrandedCurrency>{{cite web|url=http://blog.ted.com/2013/07/25/10-alternative-currencies-from-bitcoin-to-berkshares-to-sweat-to-laundry-detergent/ |title=10 alternative currencies, from Bitcoin to BerkShares to sweat to laundry detergent |date=July 25, 2013 |publisher=[[TED (conference)]] |archive-url=https://archive.today/20130725164603/http://blog.ted.com/2013/07/25/10-alternative-currencies-from-bitcoin-to-berkshares-to-sweat-to-laundry-detergent/ |archive-date=July 25, 2013 |url-status=dead  }}</ref>

Historically, pseudo-currencies have also included [[company scrip]], a form of wages that could only be exchanged in [[company store]]s owned by the employers. Modern [[token money]], such as the tokens operated by [[local exchange trading system]]s (LETS), is a form of barter rather than being a true currency.

The currency may be Internet-based and digital, for instance, [[Bitcoin]]<ref>{{cite web|last=Hough|first=Jack|title=The Currency That's Up 200,000 Percent|url=https://finance.yahoo.com/news/pf_article_112854.html |work=SmartMoney (The Wall Street Journal)|access-date=December 14, 2012 |archive-url=https://web.archive.org/web/20121024131227/http://finance.yahoo.com/news/pf_article_112854.html |archive-date=October 24, 2012|url-status=dead |date=Jun 3, 2011}}</ref> is not tied to any specific country, or the IMF's SDR that is based on a basket of currencies (and assets held).

Possession and sale of alternative forms of currencies is often outlawed by governments in order to preserve the legitimacy of the constitutional currency for the benefit of all citizens. For example, Article I, section 8, clause 5 of the United States Constitution delegates to [[United States Congress|Congress]] the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, the United States Congress has the concurrent power to restrain the circulation of money which is not issued under its own authority in order to protect and preserve the constitutional currency. It is a violation of federal law for individuals, or organizations to create private coin or currency systems to compete with the official coinage and currency of the United States.<ref>{{cite web | title= Defendant Convicted of Minting His Own Currency |url=https://archives.fbi.gov/archives/charlotte/press-releases/2011/defendant-convicted-of-minting-his-own-currency|date= March 18, 2011|website = FBI}}</ref>