Social Sciences, asked by lakshanaravikumar200, 4 months ago

Write a short note about ‘Digital Currency’​

Answers

Answered by aishwarya3521
3

Answer:

A digital currency is a medium of exchange that is generated, stored and transferred electronically. Digital currencies are not typically associated with any country's government or represented in physical forms like the coins and notes of traditional currencies.

Cryptocurrencies, the most common category of digital currency, are the type that comes to mind for most people when they hear the term. Digital currencies exhibit properties similar to other currencies, but do not have a physical form of banknotes and coins. Not having a physical form, they allow for nearly instantaneous transactions. Usually not issued by a governmental body, virtual currencies are not considered a legal tender and they enable ownership transfer across governmental borders.

These types of currencies may be used to buy physical goods and services, but may also be restricted to certain communities such as for use inside an online game. One type of digital currency is often traded for another digital currency using arbitrage strategies and techniques.

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Answered by sharmapsprachi2006
2

Answer:

Digital currency is a form of currency that is available only in digital or electronic form, and not in physical form. It is also called digital money, electronic money, electronic currency, or cyber cash.

Digital currencies are currencies that are only accessible with computers or mobile phones, as they only exist in electronic form.

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