Any currency, money, or money-like item that is handled, saved, or exchanged primarily on digital computer systems, particularly over the internet, is referred to as digital currency (also known as digital money, electronic money, or electronic currency). Cryptocurrencies, virtual currencies, and digital currencies[https://blog.quidax.com/lesson-1-what-is-a-cryptocurrency] issued by central banks are examples of digital currency types. Digital currency can be saved on a stored-value card, a centralized electronic computer database held by a business or bank, a distributed internet database, digital files, or even a distributed internet database.

Contrary to currencies with printed banknotes or minted coins, digital currencies typically lack a physical form but exhibit characteristics that are similar to those of traditional currencies. This absence of a tangible form makes online transactions almost instantly possible and eliminates the expense of issuing notes and coins. Virtual currencies, which are often not issued by a governmental authority and are used to transfer ownership across national boundaries, are not regarded as legal cash.

This kind of currency may be restricted to usage in certain communities, such as for use in online games, but it may also be used to purchase tangible products and services. Digital money can be decentralized, where the control over the money supply is predetermined or reached democratically, or centralized, where the authority over the money supply is exercised by a single entity (such as a bank).

Any form oc currencies that lack these above features and characteristics stated are not digital currencies