Cryptocurrency is a common name for a type of cryptoasset designed around electronic, peer-to-peer transfer. The word comes from the idea of electronic cash, but it should not be confused with a physical currency or with every kind of cryptoasset.
In UK guidance, official bodies often use the broader word “cryptoasset”. That matters because the word cryptocurrency can suggest that all such assets function like pounds sterling. They do not.
Why it is called a cryptocurrency
The Bank of England explains that the “currency” part of the word reflects the original idea of electronic cash. The “crypto” part refers to the cryptographic technology used in recording transfers and holdings. Bitcoin is the best-known example of a system associated with this terminology.
The term is now used broadly in everyday conversation. That broad use can hide important differences between systems, networks and digital assets. A familiar name is not a description of how a particular system works.
Cryptocurrency and cryptoasset
“Cryptoasset” is the wider UK-facing term. The FCA says that Bitcoin, Litecoin and similar exchange tokens are often referred to as cryptocurrencies, cryptocoins or payment tokens. It uses cryptoasset as the umbrella category for different kinds of digitally recorded value or rights.
- Cryptocurrency: common everyday wording, usually associated with electronic cash or exchange-token systems.
- Cryptoasset: the wider term used in UK legal and regulatory discussion.
- Blockchain: one way records can be organised; it is not another word for cryptocurrency.
Why official wording can differ
The Bank of England says central banks use “cryptoassets” rather than “cryptocurrencies” because such assets cannot really be considered a legitimate form of money. This is useful context for language, not a test that answers every legal or consumer question about an individual product.
Do not confuse the name with a recommendation
The word cryptocurrency does not prove that an asset has value, is widely usable, is authentic or is suitable for a particular person. It also does not explain who made it, how the relevant network works or what rights, if any, go with it.
For related definitions, start with the crypto glossary. Our Crypto explained hub keeps terminology separate from investment decisions.
Sources and scope
See the Bank of England’s cryptoassets explainer and the FCA’s cryptoassets overview. This page is educational information, not financial, tax or legal advice. Source check: 15 September 2026. To report an error, contact The Coin Expert with the page and a source.