With the rapid technological advancement in the world of communications, the steady development in financial transactions has also witnessed a new evolution represented by the emergence of new types of money. The underlying goal has been to facilitate operations and reduce the loss of time, effort, and money. As a result, what is known as digital or encrypted currencies emerged, providing a new perspective on financial transactions that do not require the presence of monetary intermediary institutions and without oversight from central banks.

Digital currencies have succeeded in establishing themselves in the global financial market, and despite their ongoing risks, they still dominate the minds of many in the field of money trading and stock exchanges. This research clarifies the definition of digital currencies, their emergence and evolution, the reasons for their proliferation, the reality of dealing with them, an overview of their international recognition, and the risks associated with the use of digital currencies.