Digital currency

(digital currency, electronic currency or electronic currency) is any currency, currency or currency-like assets that are mainly managed, stored or exchanged on digital computer systems (especially via the Internet). Types of digital currency include encrypted currency, virtual currency and central bank digital currency. Digital currency can be recorded in a distributed database on the Internet, in a centralized electronic computer database owned by a company or bank, in a digital file, or even on a stored-value card.

Digital currency has similar attributes to traditional currency, but usually does not have a physical form, unlike currency with printed banknotes or minted coins. Due to the lack of physical form, almost instant transactions can be conducted via the Internet, and the costs associated with distributing banknotes and coins are eliminated. Virtual currencies are usually not issued by government agencies, so they are not considered legal tender.

They can transfer ownership across government boundaries. These types of currencies can be used to purchase tangible goods and services, but they may also be limited to certain communities, such as in online games. Digital currency can be centralized, and the money supply can be controlled at the center (for example, banks), or it can be decentralized, and it can be a predetermined or democratically agreed money supply control.