Digital Money

Digital money (also called electronic money or e-money) is money that exists only in digital form. Unlike physical cash (coins or banknotes), it is stored, transferred, and used electronically usually through computers, smartphones, or cards.

💡 Key Features :

No Physical Form – You can’t touch it; it’s all virtual.

Used Online or with Digital Devices – Transactions happen through apps, websites, or cards.

Instant Transfers – Money can be sent or received instantly, anywhere in the world.

🔑 Types of :

Bank Transfers & Online Banking – Money moved through digital systems by banks.

Mobile Wallets – Apps like PayPal, Google Pay, Apple Pay, PhonePe.

Cryptocurrencies – Decentralized digital currencies like Bitcoin, Ethereum.

Central Bank Digital Currencies (CBDCs) – Government-backed currency (like a digital dollar or digital rupee).

✅ Benefits:

Fast and convenient

Easy for online shopping and international payments

Reduced need for carrying cash

⚠️ Challenges:

Needs internet and tech access

Risk of hacking or fraud

Less privacy compared to cash