What is Digital currency?
Digital Currency is a form of electronic currency that exists only on the internet without any physical form. It is a versatile, dual-purpose and multifunctional currency that has various application over different categories Types of Digital Currency Virtual Currency: Virtual currency or electronic money is used as an alternative to physical money to provide transaction flexibility to customers. They are regulated and controlled by their respective organizations. The money used in your Amazon PAY wallet and Paytm wallet are some examples of e-cash.
Cryptocurrency: These currencies are regulated by market demand and supply and are purchased by individuals in exchange for their nationalized currency. It is used as a trading and investment option. The Reserve Bank of India legalized the use of cryptocurrency in March 2020. Bitcoin, Ripple, and Libra are some examples of online currencies. Why do we need Digital Currency? • Quick and flexible transactions • Reduces Intermediaries • Eliminates the need of carrying physical currency. • Modern day investment options