The classification of virtual currencies that follows is drawn from The Financial Action Task Force (FATF). They propose that virtual currencies be classified according to:
- Whether they can be converted back and forth for fiat currency or not (Convertible or non-convertible).
- Whether there is a single administrating authority for the virtual currency or not (centralized or decentralized).
The definitions of these categories and some further discussion can be found in the following sections. Other classifications are, of course, also possible.