Table of Contents
Definitions of Currency
Virtual currency (IRS ruling 2014) – “Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like ‘real’ currency…but [virtual currency] does not have legal tender status in any jurisdiction.”
’Real’ currency (IRS ruling 2014) (FinCEN Guidance on Virtual Currencies) (31 CFR § 1010.100(m)) – “The coin and paper money of the United States or of any other country that is (i) designated as legal tender, (ii) circulates, and (iii) is customarily used and accepted as a medium of exchange in the country of issuance.”
Convertible virtual currency (IRS ruling 2014) – “Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency”
Definitions of Money
Money (Cal. Comm. Code § 1201(b)(24)) (Cal. Fin. Code § 2003(n)) – “‘Money’ means a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”
Money (Cal. Code Civ. Proc. § 676.1(7)) – ”‘Money’ means a medium of exchange for the payment of obligations or a store of value authorized or adopted by a government or by intergovernmental agreement.”
Monetary value (Cal. Fin. Code § 2003(m)) – “Monetary value” means a medium of exchange, whether or not redeemable in money.
Definitions of Stored Value
Stored Value (Cal. Fin. Code § 2003(v)) – “Stored value” means (i) monetary value representing a claim against the issuer that is (ii) stored on an electronic or digital medium and evidenced by an electronic or digital record, and that is (iii) intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services. The term does not include a credit card voucher, letter of credit, or any stored value that is only redeemable by the issuer for goods or services provided by the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
Definitions of Check
Check (Uniform Commercial Code Article 3 §3-104), means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier’s check or teller’s check. An instrument may be a check even though it is described on its face by another term, such as “money order.”
Check seller (Cal. Fin. Code Div. 3, c. 1, § 12002) – is a person: (a) who, for compensation, engages, in whole or in part, in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, or receiving money as agent of an obligor for the purpose of paying to a person other than the check seller bills, invoices, or accounts of such obligor, or (b) who, without direct compensation and not as an authorized agent for a utility company, accepts money for the purpose of forwarding it to others in payment of utility bills. In the state of California, check sellers are required to obtain a check sellers license.
Check (Cal. Com. Code Div. 3 c. 1 § 3104 (f)) means (1) a draft, other than a documentary draft, payable on demand and drawn on a bank, (2) a cashier’s check or teller’s check, or (3) a demand draft. An instrument may be a check even though it is described on its face by another term, such as “money order.”
Cashier’s check (Cal. Com. Code Div. 3 c. 1 § 3104 (g)) means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
Teller’s check (Cal. Com. Code Div. 3 c. 1 § 3104 (h)) means a draft drawn by a bank (1) on another bank, or (2) payable at or through a bank.
Traveler’s check (Cal. Com. Code Div. 3 c. 1 § 3104 (i)) means an instrument that (1) is payable on demand, (2) is drawn on or payable at or through a bank, (3) is designated by the term “traveler’s check” or by a substantially similar term, and (4) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.