Digital currency is a form of currency that is available only in digital or electronic form, not in physical form like cash or coins. Today, it plays a vital role in shaping how we exchange value in the modern economy.
Examples of Digital Currencies
Bitcoin – A decentralized cryptocurrency.
Ethereum – A crypto platform supporting smart contracts.
Central Bank Digital Currencies (CBDCs) – Issued by governments like China's Digital Yuan.
Stablecoins – Cryptos like USDT backed by real-world assets.
Benefits of Digital Currency
Fast and borderless transactions
Reduced transaction fees
Enhanced financial inclusion
Transparency and immutability on blockchain
Concerns and Challenges
Volatility in prices (especially cryptocurrencies)