Digital currencies and cryptocurrencies aren’t the same thing?”. Nope, they are not!

Digital Currency Defined

According to the European Central Bank’s 2015 “Virtual currency schemes — a further analysis” report, virtual currency is a digital representation of value, not issued by a central bank, credit institution or e-money institution, which, in some circumstances, can be used as an alternative to money. In a nutshell, digital currencies are another name for money used to pay for specific goods or services on the Internet.

Cryptocurrencies Defined

Cryptocurrencies are algorithm powered currency used as tokens in select online communities and Cryptocurrencies are a specific variant of digital currencies. Cryptocurrencies use Blockchain and a decentralized ledger.

Digital Currencies Vs. Cryptocurrencies — The Main Differences

1. Digital currencies are centralized, Cryptocurrencies are decentralized
2. Digital currencies are not transparent, Cryptocurrencies are transparent.
3. Digital currencies have a central authority, Cryptocurrencies are regulated by their respective communities.

Thanks for reading. Until next time!