digital currency

Digital currency refers to any form of money that exists only in electronic form, including cryptocurrencies like Bitcoin and Ethereum, as well as central bank digital currencies (CBDCs) issued by governments. Unlike traditional cash, digital currencies operate on blockchain or centralized systems, enabling fast, borderless transactions. While cryptocurrencies offer decentralization and privacy, CBDCs provide government-backed stability. Digital currencies are transforming finance by reducing reliance on banks, lowering transaction costs, and enabling new financial models in decentralized finance (DeFi) and Web3.