Digital Currency

• What is digital currency?

  Digital currency is a form of money that exists only in electronic form. Examples include Bitcoin and other cryptocurrencies.
• How is digital currency different from traditional currency?

  Unlike traditional currencies (like the British Pound or US Dollar), digital currencies are not printed or minted and exist only in digital form, typically stored in online wallets.
• What technology supports digital currency transactions?

  Digital currencies use blockchain technology for secure, transparent, and decentralized transactions, which prevents double-spending and ensures the integrity of the system.
•  Name two types of digital currencies.

  Cryptocurrencies (e.g., Bitcoin, Ethereum) and Central Bank Digital Currencies (CBDCs), which are issued by central banks.
• What are the advantages of using digital currency?

  Digital currencies can offer fast transactions, lower fees, global access, and increased privacy.
• What are some risks associated with digital currency?

  Risks include volatility in value, lack of regulation, cybersecurity threats, and the potential for illegal activities like money laundering.
• Cryptocurrency


  A form of digital currency that relies on cryptographic techniques for secure financial transactions. Cryptocurrencies, such as Bitcoin and Ethereum, are decentralized and often stored in digital wallets.