Digital Currency is a form of currency that is available only in digital and electronic forms. It is also called digital money, electronic currency, and cybercash as well. It doesn’t have a physical form, it has only a digital form. 

Features of Digital Currency: 

Digital currencies can be centralized or decentralized. Fiat currency exists in physical form and it is a centralized system of production and distribution is majorly done by a central bank and government agencies. There are different types of currencies that exist in the electronic realm. 

Types of digital currencies are 

· Crypto currencies: Crypto currencies are digital currencies that use cryptography to secure and verify transactions in a network. It is also used to manage and control the creation of such currencies.

 · Virtual currencies: An unregulated digital currency it is controlled by developers or a founding organization that consists of various stakeholders that are involved in the process.

· Central Bank digital currencies is a regulated digital currency that is issued by the central bank of a country. It is the replacement for traditional fiat currency. It exists purely in digital form

Advantages of Digital Currency 

1. Digital currencies generally exist within the same network, and the time required for money transferring is fast. 

2. It doesn’t require physical manufacturing of money and saves the cost of production. 

3. Even though the transaction amount is limited but you can easily send the money to various people at a time. You can use this digital money to pay various bills as well. 

There are many advantages to digital currency there are many problems as well like hacking which may lead to losing money in a short span of time. But it is a proven fact that digital currency has taken the country by storm.

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