What is Digital Currency?
Any currency, money, or money-like item that is largely handled, saved, or exchanged on digital computer systems, particularly over the internet, is referred to as digital currency (digital money, electronic money, or electronic currency).
Understanding Digital Currency
Cryptocurrency, virtual currency, and central bank digital currency are all examples of digital currencies. Digital currency can be held in a distributed internet database, a centralized electronic computer database owned by a firm or bank, digital files, or even on a stored-value card.
Digital currencies have qualities similar to traditional currencies but, unlike currencies with printed bills or minted coins, do not have a physical form. This lack of physical form enables near-instantaneous online transactions and eliminates the cost of transmitting notes and coins. Virtual currencies, which are often not issued by a governmental agency, are not regarded legal cash and facilitate ownership transfer beyond governmental borders.
This sort of currency can be used to purchase tangible products and services, but it may also be limited to specific communities, such as use within an online game.
Digital money can be centralized, with a central point of control over the money supply (for example, a bank), or decentralized, with power over the money supply predefined or democratically agreed upon.
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