2. Privacy:
Privacy in this sense refers to the ability to conceal the information of the account owner.
With digital currencies, this is practically impossible. To open a digital account, you need to upload your photo and fill in your personal details, to make use of services like PayPal, you have to fill in your information like name and address. Hence, you can easily be tracked.
On the other hand, you dont necessarily need to disclose any of your personal information when opening a wallet for cryptocurrency trading. In fact, coins like Dash are available to provide full anonymity, and this is one of the reasons why cryptocurrencies were widely used on the dark web.
Yes, for me privacy is the most difference between digital currency and cryptocurrency.
Although bitcoin is not anonymous, you can use other coins such as Monero to become anonymous.
Digital currency cannot do that. Only cryptocurrency can make you using your money anonymously.