Is it possible for digital currency to replace the traditional currency?

Digital currency is likely to replace the traditional currency.

Since the beginning of this year, the central bank's experiment with digital currency has obviously accelerated. With the recent pilot of digital RMB red envelopes in Shenzhen, people in the industry generally pointed out that this is an important node for the central bank to move towards the practical application of digital RMB. Although it has not been officially unveiled, people in the industry generally believe that as China gradually moves towards a cashless society, the era of digital RMB is coming, and it will replace the traditional currency as much as possible in the future.

Digital currency, abbreviated as DC, is the abbreviation of "digital currency" in English, and it is an alternative currency in the form of electronic money. Digital gold coins and cryptocurrency belong to digital currency.

Digital currency is an unregulated digital currency, which is usually published and managed by developers and accepted and used by members of a specific virtual community. The European Banking Authority defines virtual currency as a digital representation of value. It is not issued by the central bank or authorities, nor is it linked to legal tender, but it can be transferred, stored or traded electronically as a means of payment because it is accepted by the public.