Cryptocurrencies are decentralized currencies that are traded between individuals. It is an intangible asset only existing in electronic form since it is a digital asset. By using these currencies, people can send money as easily as sending an email, with faster transactions than a bank, and with fewer fees, since they do not require credit cards and do not require an intermediary to make payments.

The process of managing shared accounts is called Blockchain, which is public and distributed through a large network since everyone with a Bitcoin owns a copy of the digital history and transactions, thereby increasing the level of trust. It can be defined individually, or it can be programmed through a complex digital code.

A digital currency is a form of money that exists only electronically and has no physical counterpart, like coins or banknotes. It is stored and transacted through digital wallets, using computers, smartphones, or online platforms. Examples include cryptocurrencies such as Bitcoin and Ethereum, as well as central bank digital currencies (CBDCs) under development. The effects of digital currencies are significant. They make payments faster, cheaper, and more accessible, especially across borders. They also reduce the need for intermediaries like banks. However, they raise concerns about security, volatility, and regulation. For governments, digital currencies could improve financial inclusion but also challenge traditional banking systems. Their rise signals a major shift in how money is created, transferred, and stored.