The Difference Between Cryptocurrency & Digital Currency

Are Digital Currency & Cryptocurrency Really Different?

Digital currency and cryptocurrency are often mistaken to be just the same thing, but that is not really the case. Digital currency and cryptocurrency have their own similarities and differences, which you’ll be able to tell by the end of this article.

Since the emergence of cryptocurrency and the mainstream acceptance that it has been getting lately, the usage of digital currencies has also increased. Due to its contactless benefit, it became the center of financial and technological advancements during the pandemic. Now, both currencies are the talk of the town, but many are still confused about them.

What is Digital Currency?

Digital currencies are the government-issued electronic version of fiat currencies. They are used for contactless transactions between parties, for example, when money is transferred electronically from one bank to another.

Central authorities and governments regulate digital currency. You use digital currencies when you make an online transfer of money from your bank account or digital wallet that holds value equivalent to fiat currency. The digital currency is changed into liquid cash when you use an ATM.

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