What is digital currency exactly?

Digital money is any payment only in electronic form (or digital currency). Digital money is recorded and transmitted through online networks but lacks a physical form like a dollar bill or coin.
What different kinds of digital currency are there?
Digital money can be customized to serve many purposes due to its technological underpinning. The three types of digital money are cryptocurrencies, central bank digital currencies, and stablecoins, in addition to being a digital version of fiat money.
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