The term private currency originated from as currencies given by some private resources. Private currency is a currency which is issued by private source. The private currency issuing source may either be a commercial business organization, a private individual or a non commercial, nonprofit enterprise. Private currency is considered strictly illegal by many countries in the world.
Private Currency is considered as a complete contrast to currency issued by governments or Central Banks.
But in spite of all legal odds, more than four thousand private currencies have been issued by private parties in about thirty five countries. Commercial trade exchanges, who are using barter credits as their units of exchange are also issuing private currency. This includes private gold, silver or precious metal exchange, online credits and debits, local conventional currencies exchange or exchange of digital currencies those are in circulation.
Private currencies issued by private entities are not recognized by governments. Generally private currencies are also issued as paper currency. This runs the risk being counterfeited exactly similar to a government paper currency. Private currencies have also become and are still subjected to various criminal activities such as fraud.
Many business tycoons and capitalists have issued private currency from time to time and they have been arrested and punished by law enforcing authorities in charges of money laundering and counterfeiting conspiracy with various fraud cases.