Digital currency is a type of money that exists only in digital form, mainly on computers and the internet. These currencies usually don’t belong to any country’s government and are often not controlled by a central authority. There are three main kinds of digital currencies: cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs).
Cryptocurrencies like Bitcoin use special codes to secure transactions.
Stablecoins have a stable value, often linked to assets or regular money.
Central Bank Digital Currencies (CBDCs) are digital versions of a country’s currency, managed by its central bank.
Digital currencies make transactions easy and cheap but can be volatile and face legal challenges.
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