Digital Currency

Digital currency refers to any form of currency that is created and stored in digital form. It can be used for online transactions and is often decentralized, relying on technology such as Blockchain. Digital currencies can be categorized into cryptocurrencies, Central Bank digital currencies (CBDCs), and virtual currencies.

Examples:

  • Bitcoin: The first and most well-known Cryptocurrency, created in 2009.
  • Ethereum: A decentralized platform that enables Smart Contracts and applications.
  • USDC: A stablecoin pegged to the US dollar, providing price stability.
  • Central Bank Digital Currencies (CBDCs): Digital forms of national currencies, such as the digital yuan in China.

Use Cases:

  • Remittances: Digital currencies allow for low-cost and fast cross-border transactions.
  • Smart Contracts: Automated contracts executed on Blockchain platforms, reducing the need for intermediaries.
  • Online Purchases: Many retailers accept cryptocurrencies as a payment method.
  • Investment: Digital currencies are increasingly viewed as an Asset class for investment portfolios.