Bitcoin ‘n’ Blockchain (001): Fancy Words

New digital (finance) world and their fancy words

I would like to offer a few glimpses of the changing world relating to the finance, economy and law. The building blocks are the fancy words which we all hear from the distant corners of this (new beautiful) world. Let‘s get started.


Atomic ~                   a very fancy word. Most common used in words combination like Atomic transactionAtomic transferAtomic swap.

The word meaning refers to the ancient Greek word atomos “uncut, indivisible” and suggests that the particular transfer, transaction or swap of (financial) information will either occur in it entirety or not at all.

On the one hand it suggests the highest possible safety of the financial transactions.

On the other hand it should have reminiscence of fastness or real-time financial transactions.

Atomic transactions See Atomic.

Atomic transfer       See Atomic.

Atomic swap            See Atomic.


Bitcoin                      a very fancy word and a promise to become rich in few days.

                                  It is not a legal tender but only a digital token.

Because of the fact that there is not an official issuer (like in the case of a Stablecoin) and it is not legal tender, the owner of a Bitcoin do not have the claim to use this digital token to make official payments or to convert it into a legal tender.

                                  Synonyms: Crypto assetsDigital assets.                 

                                  Compare: Stablecoin. Antonym: Legal tender.

Blockchain               See DLT.


CBDC                       Central Bank Digital Currency.

For example:the digital euro.

Cryptoasset(s)         A digital asset secured by a cryptographic system.

                       SeealsoDigital assets.

Cryptocurrency       a misleading and a buzz word.

It is not a legal tender but a digital token secured by a cryptographic system.                             

                                 Synonyms: Crypto assetDigital asset

                                 Compare: Stablecoin. Antonym: Legal tender.


Digital asset(s)          Asset that exists in a digital form.

                                  Synonyms: Crypto assetDigital asset, BitcoinEthereum

Digital euro              A project by ECB to issue a new digital form of legal tender in the EU.

Digital token            A digital something that can be exchanged in special places and could be transferred into legal tender. A digital token can be asset-backed (e.g. Stablecoins like Tether) or not (e.g. Bitcoin, Ethereum).

DLT                         the buzz word that will – allegedly – change the whole world.

                                 Distributed ledger technology:

                                 distributed = spread or divided; not collected in one place (e.g. one pc)

                                 ledger = a book of data that lies permanently in some specified place

 A decentralized digital public protocol which with each new update replicate itself.

                                 Synonyms: Blockchain.


the ECB                    the European Central Bank

Ethereum                 a very fancy word and a promise to become rich in few days.

                                  It is not a legal tender but a digital token.

                                  Compare Bitcoin, Digital token.


Fiat currency           money which is issued by the governments and is an official currency.

                                  Synonyms: official currency, Fiat money

                                  Examples: the U.S. dollar, the euro, the yen, the renminbi.

Fiat money               See Fiat currency.


HQLA                      High Quality Liquid Asset(s)

Asset that can be easily and immediately converted into cash and because of the nature of it perception in the market will create no (or only a small) lost of the current value of this asset.


Legal tender             money forms which are recognized by governments as their official means of payment. In EU these are euro coins and banknotes issued by the ECB and the NCBs.

                                 Synonym: Fiat currency, Fiat Money, official currency.

Libra                        a proposed international stablecoin by Facebook Inc.

                                 It will be not a legal tender but a digital token backed by actual assets.

                                 Compare: Stablecoin.


the NCB                   the (national) central bank, for example the Deutsche Bundesbank (the German Federal Bank)                                  


Stablecoin                 a misleading and a buzz word.

It is not a legal tender but a digital token backed by actual assets.

A digital token designed to minimize the volatility of its value by the fact that there is an official issuer and the issuer guarantees the conversion of the digital token into legal tenders. The stablecoins are backed by actual assets.

                                 Example: Tether, Libra.


Tender                      See Legal tender.

Tether                      a Stablecoin.

It is not a legal lender but a digital token backed by actual assets.

First announced in 2014 under the name Realcoin. A digital token built on blockchain with an official issuer which claims that “one Tether […] is backed 100% by actual assets”.