Decentralized Currency

A decentralized currency is a form of money whose supply rules and transaction records are maintained by a distributed network of participants rather than by a central bank, government or company. Ownership is tracked on a shared ledger, usually a blockchain, and new units are created according to rules written into the software, so no single party can freeze accounts, reverse payments or print more at will. Bitcoin, launched in 2009, is the best-known example, and the idea grew out of earlier work by the cypherpunk movement. Decentralized currencies contrast with fiat currency, issued by states, and with a central bank digital currency, which is digital but centrally controlled. Their price volatility and limited legal-tender status mean that, as of November 2026, few people use them for everyday spending.