The term digital currency refers to any form of money that exists exclusively in a digital format, and it can include cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs). Unlike traditional fiat currency, digital currencies facilitate online transactions through secure processes using blockchain technology or other encryption methods. They offer benefits such as faster transactions, lower fees, and decentralized control. As the financial landscape evolves, digital currencies are gaining prominence, requiring businesses and consumers to adapt to new methods of transactions and payment systems.