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dotpaw - Digital Currency
Manage episode 427258960 series 3383046
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Digital currency refers to any form of currency that exists purely in electronic or digital form. Unlike traditional physical currencies like coins or banknotes, digital currencies are intangible and are typically stored, transferred, and transacted electronically. They rely on cryptographic techniques to secure transactions and control the creation of new units.
Digital currencies can take various forms, including:
1. Cryptocurrencies: These are decentralized digital currencies that use cryptographic techniques to secure transactions and control the creation of new units. Examples include Bitcoin, Ethereum, and Litecoin.
2. Central Bank Digital Currencies (CBDCs): These are digital currencies issued by a central bank and are typically considered legal tender. CBDCs are centralized and regulated by the issuing authority. They can either be retail CBDCs, available to the general public, or wholesale CBDCs, used for interbank transactions.
3. Virtual Currencies: These are digital representations of value that are not issued or controlled by any central authority and are typically used in online gaming or virtual worlds. Examples include virtual currencies used in games like World of Warcraft or Second Life.
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