Digital currency (or cryptocurrency) is money or cash equivalents that are stored, managed and exchanged on digital electronic device systems, especially over the internet.[1] Digital currency can be stored in distributed databases on the Internet, in electronic computer databases, in digital files, or in stored value cards. Examples of digital currencies include cryptocurrencies, virtual currencies, central bank digital currencies, and e-Cash.


Classification of coins, based on "Central Bank Electronic Currencies" by Morten Linnemann Bech and Rodney Garratt

The European Central Bank (ECB) describes: electronic money is a monetary value stored on an electronic device commonly used to make payment transactions to organizations other than institutions. issuer.[2] Meanwhile, the Bank for International Settlements (BIS) defines cryptocurrency as a stored value or prepaid product in which information about a customer's available funds or value is stored on an electronic device owned by the customer.[3] Digital currencies exhibit similar characteristics to other currencies, but do not have the physical form of banknotes and coins. Having no physical form, they allow for near-instant transactions. One of the digital currencies is virtual currency, which is not usually issued by a government agency, virtual currencies are not considered legal tender, and they allow the transfer of ownership across government borders.[4] These currencies can be used to purchase physical goods and services, but may also be restricted to certain communities, such as for use in online games.[5 ] One digital currency is often traded for another digital currency using arbitrage strategies and techniques. Digital currencies can be centralized, where there is a central point of control over the money supply, or decentralized, where control of the money supply can come from a variety of sources.