Digital currency; A general term used to describe all electronic money options, whether virtual currency or cryptocurrency. The digital currency concept was first introduced in 1983 by David Chaum, who implemented it in the form of Digicash.
The distinguishing feature of digital currencies is that they exist only in digital or electronic form and, unlike real banknotes or coins, they must be intangible. Digital currencies can only be owned and spent through electronic wallets or designated connected networks. Normally there are no middlemen (no banks), so transactions are instant and almost no fees.
Coins, tokens and virtual currencies are all digital currencies. Although digital by definition, virtual currencies are different. The European Central Bank used the following statements in its definition in 2012:
“A virtual currency is a digital currency that can be issued and controlled by its developers in an unregulated environment and used as a method of payment among members of a particular virtual community.
Digital currencies used in games are classified as virtual money.
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