Digital currency - Definition from the Hotspot Shield Encyclopedia

Digital Currency is a form of monetary currency that has no physical transaction system i.e. bank notes of coins. A digital currency is created, used, bought and sold online.

Digital currencies are usually proprietary and used between certain businesses, but there are also digital currencies that have attempted to promote standard usage such as Bitcoin. Digital Currencies allow for extremely swift transactions and can be used to buy physical items, but are mainly used for online purchases. One of the main points of a digital currency is that it has no central ownership, and one single organization has no control over its usage. There are many pros and cons to digital currency, but a recurring problem concerns the lack of security and regulations that apply to these forms of currency.