Digital currency Definition
The world is going digital and so is its currency. Digital currency or electronic currency is intangible money that is available only in digital form. It can be availed via the internet, smartphones, credit card, and so on. It also has certain properties as that of regular currency; it can be used for the purchase of goods and services. It facilitates an instantaneous transfer of money in spite of geographical barriers and time zones. However, Digital currency can be availed as a tangible form of currency through ATMs and checkbook withdrawals from the bank.
However, several countries have still not accepted digital currency, especially cryptocurrencies, due to the digital vulnerabilities as well as the absence of a common entity. On the other hand, digital money helps reduce cost and complexity with respect the financial side of things. It maintains the anonymity of its user and the fact that digital money cannot be counterfeited is a valuable bonus.
However, several countries have still not accepted digital currency, especially cryptocurrencies, due to the digital vulnerabilities as well as the absence of a common entity. On the other hand, digital money helps reduce cost and complexity with respect the financial side of things. It maintains the anonymity of its user and the fact that digital money cannot be counterfeited is a valuable bonus.
Digital currency encompasses centralized, decentralized and virtual forms of currencies. Centralized currencies have a single entity that takes all decisions for its currency. Centralized currency systems such as PayPal, eCash, and others of the kind allow cross-border transaction of digital currency. Centralized systems also include mobile payment wallets such as Google Wallet and Apple Pay which allow you to make digital transactions on the go. The decentralized currencies have no entities that decide all its aspects. Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin operate on multiple encryption techniques, are some of the more popular choices across the world among decentralized currency systems. Virtual currencies are unregulated digital currency that is generated by specific developers and can be used only in the virtual world.