The term “digital currency” refers to money that exists solely in a digital format and can be used for online transactions. Unlike traditional physical currency, digital currencies are typically decentralized, operating via blockchain technology or peer-to-peer networks. This includes forms such as cryptocurrencies (e.g., Bitcoin, Ethereum) and central bank digital currencies (CBDCs). Digital currencies enable faster and often cheaper transactions across borders, as they eliminate intermediaries. Furthermore, they provide a digital alternative to traditional banking systems, fostering financial inclusion, especially in regions with limited access to banking institutions.