Digital currency is a virtual currency based on node network and digital encryption algorithm. Digital currency is called DC for short, which is the abbreviation of “Digital Currency” in English, and is an alternative currency in the form of electronic currency. Digital gold coin and cryptocurrency belong to digital currency. Digital currency, also known as Virtual Transition, refers to a virtual electronic currency that is issued, circulated, exchanged and accepted by computer network or electronic network, corresponding to real currency (such as paper currency or coins).
The generation of digital currency mainly comes from the generation of blockchain. Bitcoin is the beginning of digital currency. With the development of blockchain technology, more and more digital currencies have been invented, such as Ethereum, Xrp, etc. With the increase of this kind of virtual currency, its impact on national economies and sovereign currencies is also deeper and deeper. Based on this, there are two major trends at present: one is that central banks are also stepping up their research on their official digital currencies, and the other is the research and development of the super sovereign currency Libra.
Digital currency is different from Alipay and WeChat in nature. Alipay, WeChat payment and mobile banking are all electronic currencies, not digital currencies. These are all payment methods based on electronic accounts. Essentially, it is an information process of the existing legal tender, not strictly a digital currency. And it is also different from Q-coin and Bitcoin. Usually, what we call Q-coin and Bitcoin are virtual currencies. The biggest difference between them and digital currencies is the issuer.
Virtual currency is the electronic form of illegal currency. The issuer is not the central bank, and it can only circulate in a specific environment, such as game currency and Q currency in many games. Digital currency can be used in real transactions. Only the national issued legal digital currency, and Bitcoin is non legal digital currency.
