Types of Digital Currencies:
There are four main types of digital currencies, which are as follows:
Cryptocurrencies
First, it can be said that all cryptocurrencies are digital currencies; however, not all digital currencies are cryptocurrencies. This is because cryptocurrencies rely on blockchain technology, which is simply like an encrypted database that allows users to create a reliable record of their transaction data and complete it directly between the two parties in the transaction; the sender and the receiver, for example, without the need for a third-party overseer, making it secure and largely protected from tampering or fraud.
Among the most prominent examples of cryptocurrencies are Bitcoin, which was launched in 2009, and is the first and most widely known cryptocurrency to date, followed by Ethereum and Litecoin.
Type Two: Central Bank Digital Currencies.
Type Three: Stablecoins.
Type Four: Virtual Currencies.
We will elaborate on each type in upcoming posts.
