• Digital money is money in a purely digital form. It is not a physical asset like cash or other commodities like gold or oil.

  • Digital money can optimize the current financial infrastructure, making money transactions cheaper and faster. It may also facilitate the conduct of monetary policy by central banks.
  • Examples of types of digital money are cryptocurrencies, central bank digital currencies and stablecoins.
  • Digital money is susceptible to hacking and can compromise user privacy.