Digital currency
Also known as: digital money · electronic money · electronic currency
- 1Managed and exchanged via digital computer systems.
- 2Includes cryptocurrency and virtual currency.
- 3May be issued as central bank digital currency.
- 4Can be recorded on distributed databases or centralized systems.
Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet.
Connections1
modern factor affecting money velocity
The rise of digital payment systems and cryptocurrencies has the potential to increase the velocity of money by reducing transaction times and friction in the exchange process.
Digital currency encompasses any form of money or asset that is primarily managed, stored, or exchanged through digital computer systems. This modern financial medium relies heavily on internet connectivity and electronic infrastructure to facilitate transactions.
Laxmicoin official LogoWikimedia Commons; laxmicoin; https://www.laxmicoin.com/images/logo.png; CC BY-SA 4.0; Wikimedia Commons: Category:Digital currencyCoinsbitWikimedia Commons; Coinsbit.io; https://coinsbit.io; Public domain; Wikimedia Commons: Category:Digital currencyTaxonomy of money, based on "Central bank cryptocurrencies" by Morten Linnemann Bech and Rodney Garratt.Wikimedia Commons; Stanjourdan; Own work; CC BY-SA 4.0; Wikimedia Commons: Category:Digital currency There are several distinct types of digital currencies, including cryptocurrency, virtual currency, and central bank digital currency. These assets can be recorded on distributed databases, centralized electronic systems owned by financial institutions, or stored within digital files and specialized cards.