What does the concept of "digital currency" encompass? 🔊
The concept of digital currency encompasses various forms of money that exist solely in digital form, including cryptocurrencies and central bank digital currencies (CBDCs). Digital currencies facilitate electronic transactions over the internet, allowing for quicker and more efficient payments. Cryptocurrencies, such as Bitcoin, use blockchain technology for security and decentralization, whereas CBDCs are issued and regulated by governments. Digital currency adoption is reshaping traditional finance, enhancing accessibility, and introducing new financial technologies.
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