digital currency

[ dij-i-tl kur-uhn-see, kuhr- ]

noun

1. any form of money or similar asset that exists only in electronic form, with management, storage, and exchange happening exclusively on computer systems: Compare cryptocurrency ( def 1 ), virtual currency ( def ).

   Players can wager bitcoin and other digital currencies on sporting events, casino games, and online tournaments.

Usage Note

There are numerous terms for money available only in nonphysical forms, and each has a slightly different scope. Digital currency is the broadest label, covering any kind of money or money-like asset that only has an electronic form. Some digital currencies are also virtual currencies, which are distinguished by being unregulated, issued by private individuals such as the developers of the currency, and generally localized to a particular community. Virtual currencies include tokens you can buy in online games, but they also include cryptocurrencies, which are distinguished by their decentralized trading networks and their use of advanced cryptography for security. The first widely adopted cryptocurrency was bitcoin, and all other cryptocurrencies are sometimes called altcoins. Another type of digital currency is a CBDC, or central bank digital currency. These are electronic-only versions of national currencies, such as China's digital yuan, and they are regulated by the same central bank that regulates the nondigital money supply in that country. A central bank digital currency is different from money stored electronically in an online bank account, because CBDCs are only issued and traded electronically, with no physical form.

Word History and Origins

Origin of digital currency¹

First recorded in 1990–95

Example Sentences

Dollar value of the digital currency bitcoin briefly topped 1-ounce price of gold.

From The Daily Beast

The GBL Bitcoin exchange held as much as $4.1 million USD worth of the digital currency for its customers.

From The Daily Beast

Compared to Liberty, Bitcoin is an even more decentralized type of digital currency known as a cryptocurrency.

From The Daily Beast

There are now several forms of encrypted digital currency out there; WikiLeaks suggests Litecoin as another option.

From The Daily Beast