What is digital currency?

Digital currency is an alternative currency in the form of electronic money? (Can be used for real goods and services transactions)

Digital currency has the main characteristics of network package. This kind of data packet consists of data code and identification code. The data code is what we need to transmit, and the identification code indicates where the data packet comes from and where it goes.

Based on the characteristics of digital currency, the direct benefit brought by digital currency to the central bank is not only to save the cost of issuing, circulating and settling paper money, but also to enhance the central bank's ability to control funds.

Electronic currency and virtual currency are collectively referred to as digital currency. According to the definition of the European Central Bank, virtual currency is issued by non-central banks, credit institutions and electronic money institutions, and in some cases it can be expressed as a digital value of currency substitutes.

Extended data:

The process of digital currency trading through the platform is as follows:

(1) Investors must first register their accounts, and at the same time obtain digital currency accounts and US dollars or other foreign exchange accounts.

(2) Users can buy and sell digital currency with the money in their cash accounts, just like buying and selling stocks and futures.

(3) The trading platform will sort the buying requests and selling requests according to the rules and start matching. If they meet the requirements, the transaction is completed.

(4) Due to the difference between the buying and selling quantities submitted by users, the buying or selling request can be partially executed.

Baidu Encyclopedia-digital currency