The digital currencyis a form of virtual currency that is electronically created and stored. There are some differences between Cryptocurrencies and digital currencies. Whereas some types of digital currencies are Cryptocurrencies, not all of them are Cryptocurrencies. Here it is evident that digital currencies and Cryptocurrencies are being taken same but there is difference.
Needless to say everything is at fast paced because of the innovation brought by the financial technology. Similarly, in digital currency space a lot of changes are taking place that are astonishing a lot of people, particularly, the governments. A lot of news reports claim that ever since digital currencies came to existence the governments & central banks feeling threatened.
However, digital currencies actually help in a lot of industries, especially on the business side. These are internet based form of currency or medium of exchange. Needless to say these can be associated with traditional currency, Forex exchange and remittances, because of the similarity of their functions which is primarily on buying physical goods and on paying services.
Where is Future for Digital Currency?
Although it has been mentioned above that there are times when digital currencies are mistaken with Virtual Currency, the readers must know that virtual currencies are defined by the European Central Bank as a type of unregulated, digital money, which is issued and usually controlled by its developers.
Similarly, the bank says that these are used and accepted among the members of a specific virtual community. However, it is different from Digital Currency because it does not have all the attributes of real currency. Needless to say virtual currencies cannot be used to buy physical goods and cannot be converted into traditional or fiat currencies.
Bright Side of Digital Currencies
As digital currencies can be used with in-person payment at physical establishments and can also be converted into fiat currency, with minimum fees to no fees, there are bright chances that these will become popular among the users without threatening the existing currency system. Therefore, there is hardly any space for the governments to act against them.
Least but not the last whereas fiat currencies are limited by their geographic regions, digital currencies can solve the restriction to great extent as these are international currencies with no borders, and is only possible online. Therefore, it can truly be said that digital currencies have bright prospect and may soon become popular all around.