What is Digital Currency
Electronic money (also known as electronic cash, electronic currency, digital money, digital cash, digital currency or scrip) refers to money which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value systems.
Technically electronic or digital money is a representation, or a system of debits and credits, used (but not limited to this) to exchange value, within another system, or itself as a stand alone system, online or offline. Also sometimes the term electronic money is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. An e-currency system may be fully backed by gold (like e-gold) or both gold and non-gold backed (like e-Bullion and Liberty Reserve).