Digital money (also known as digital currency) refers to any method of payment that is entirely electronic in nature. A digital currency is not physically palpable like a dollar bill or a coin. It is tracked and transmitted electronically. An example of a digital currency is the cryptocurrency Bitcoin.

As well as representing digital money, digital money can also represent fiat currencies such as dollars and euros. Smartphones, credit cards, and online cryptocurrency exchanges are among the tools used to trade digital currencies. In some cases, an ATM can convert virtual currency into actual cash.

These forms of payments are being revolutionised as many are preferring the digital option rather than traditional physical cash. It is a time when the former is gaining more prevalence and i believe that there will come a time sometime in the future when digital currency will manage to take over physical. More firms are accepting payemnts by digital means, and with most people owning smartphones, and using credit cards, online purchases are becoming more popular than ever, and they are more convenient and safer too.