What is Digital Currency ? It is a form of currency that is available only in digital or electronic form. Another name or definition for digital currency is digital money, electronic money, electronic currency, or Cybercash. A digital or virtual currency that uses cryptographic encryption techniques to generate units of the currency and verify transactions. Digital currencies are actually currencies designed with encrypted protocols that aim to reduce fraud and prevent counterfeiting and currency fraud.
Digital currencies are only accessible with computers or mobile phones. Digital currencies are often the cheapest method to trade currencies because they require no intermediary.
This is very important that you know the difference between digital currencies and cryptocurrencies, (All cryptocurrencies are digital currencies, but not all digital currencies are crypto). If you were to type ‘digital currency’ into Google’s news search you would most likely receive articles about cryptocurrency and in particular Bitcoin. Digital Currency as a broad term can contain anything that represents value in a digital manner. Digital currency can contain firstly what we would call electronic ‘money’, money that is simply a digital representation of government-issued fiat currency.
You can own and transact in digital currencies by using computers or electronic wallets connected to the Internet. Digital currencies can be used to buy goods and pay for services.
When you connected to supported devices or networks, you can make payments across borders with digital currencies. Digital currencies have all intrinsic properties like physical currency, and they allow for instantaneous transactions that can be seamlessly executed for making payments across borders when connected to supported devices and networks.
Lastly, we need to know that digital currencies can be used just like physical currencies for many payments and transactions, but digital currencies can be faster because they do not need intermediaries.