DescriptionDigital currency is a balance or a record stored in a distributed database on the Internet, in an electronic computer database, within digital files or within a stored-value card. Examples of digital currencies include cryptocurrencies, virtual #currencies, central bank digital currencies and e-Cash.
What Is Digital Money?
Any means of payment that exists purely in electronic form. Digital money is not tangible like a dollar bill or a #coin. It is accounted for and transferred using computers. The most successful and widely-used form of digital money is #cryptocurrency #Bitcoin. #Digital #money is exchanged using technologies such as smartphones, credit cards, and online cryptocurrency exchanges. In some cases, it can be transferred into physical cash, for example by withdrawing cash from an ATM.
Digital money is a currency that exists purely in digital form. It is not a tangible asset like cash or other commodities like gold or oil.
Digital money can include cryptocurrencies, but it is not limited to them. Most of the digital money owned in the world is owned by banking institutions.
Banks have been able to keep their cost-of-business lower thanks to digital money since they do not need to pay rent on as many physical locations or keep paying for retail employees they don’t need.
Understanding Digital Money
Digital money has been conceived of since very early in the age of the #internet. Several digital cash companies were founded in the early 1990s, the earliest and best-known of these being DigiCash. However, most of these early initiatives failed or declared bankruptcy quickly because eCommerce had hardly integrated into the internet and there were few retailers that would accept the early digital currencies. The advent of #PayPal brought forth the idea of easy-to-use digital financial transactions.