The main difference between cryptocurrency and digital currency is how it’s supported. Digital currency is supported by the authorities, whereas a computer algorithm manages cryptocurrencies. But is this true? Are they actually the same? They vary in many aspects. The utilization of digital wallets evolved with the development of technology. Governments from all countries urged their citizens to adopt digital currencies from traditional wallets as they are beneficial in many ways to both the government and the citizens of the country. The use of digital wallets peaked during the pandemic because of contactless benefits. Further, with the introduction of cryptocurrency, the use of digital wallets took a hike. All these happened so fast people were unable to differentiate between the two types of currencies. People started using both cryptocurrency and digital currency, and often they interpret the same. Digital currencies are more like other currencies but don't have a physical form, such as coins or banknotes. Where you can use that liquid cash for various expenses such as buying household goods, online shopping, giving out wages, and many more. And it's released by the central government of India that is the RBI. RBI announced working on its digital currency and the central bank digital currency (CBDC) Note: "A CBDC is a legal tender released by a central bank in a digital form, and it's similar to fiat currency and is exchangeable one-to-one with fiat currency. Let’s collect some differences between cryptocurrency and digital currency. Definition: Digital currency is the e-form of fiat money released by governments. They are utilized for contactless transactions between parties. For instance, when you transfer the amount from one bank to another. You are using digital currency when you pay from your digital wallet or bank account, which saves value concerning the actual fiat money via an electronic transfer mechanism for a product or service. Concerning this, the money which you draw from an ATM converts your digital currency into liquid cash. On the other hand, Cryptocurrencies is a store of values secured by encryption. Cryptocurrencies are mostly considered digital coins, such as Bitcoin, Dogecoin and Ether. Transactions done through such networks can be tracked and connected to wallet addresses. Also, their value is deduced. They provide a path for people to remain anonymous, but only to the limit of not revealing their true recognition. A bit can still be used to change the wallet address related to you, said Pravin Maharajan, Founder & CEO, bits Crunch These cryptocurrencies are privately held and regulated by central governments in most countries. These are created by deploying sophisticated blockchain technology. Usage: Anyone with a bank account and bank app installed on their mobiles can transact their money in the form of cash.

1. Difference Between Cryptocurrency and Digital Currency: Things You Must Know:
The main difference between cryptocurrency and digital currency is how it’s supported.
Digital currency is supported by the authorities, whereas a computer algorithm manages
cryptocurrencies.
But is this true? Are they actually the same? They vary in many aspects.
The utilization of digital wallets evolved with the development of technology. Governments from
all countries urged their citizens to adopt digital currencies from traditional wallets as they are
beneficial in many ways to both the government and the citizens of the country.
The use of digital wallets peaked during the pandemic because of contactless benefits. Further,
with the introduction of cryptocurrency, the use of digital wallets took a hike. All these happened
so fast people were unable to differentiate between the two types of currencies.
People started using both cryptocurrency and digital currency, and often they interpret the
same.
Digital currencies are more like other currencies but don't have a physical form, such as coins or
banknotes. Where you can use that liquid cash for various expenses such as buying household
goods, online shopping, giving out wages, and many more.
And it's released by the central government of India that is the RBI. RBI announced working on
its digital currency and the central bank digital currency (CBDC)
Note: "A CBDC is a legal tender released by a central bank in a digital form, and it's similar to
fiat currency and is exchangeable one-to-one with fiat currency.
Let’s collect some differences between cryptocurrency and digital currency.
Definition:
Digital currency is the e-form of fiat money released by governments. They are utilized for
contactless transactions between parties. For instance, when you transfer the amount from one
bank to another. You are using digital currency when you pay from your digital wallet or bank
account, which saves value concerning the actual fiat money via an electronic transfer
mechanism for a product or service. Concerning this, the money which you draw from an ATM
converts your digital currency into liquid cash.
On the other hand, Cryptocurrencies is a store of values secured by encryption.
Cryptocurrencies are mostly considered digital coins, such as Bitcoin, Dogecoin and Ether.

2. Transactions done through such networks can be tracked and connected to wallet addresses.
Also, their value is deduced. They provide a path for people to remain anonymous, but only to
the limit of not revealing their true recognition. A bit can still be used to change the wallet
address related to you, said Pravin Maharajan, Founder & CEO, bits Crunch
These cryptocurrencies are privately held and regulated by central governments in most
countries. These are created by deploying sophisticated blockchain technology.
Usage:
Anyone with a bank account and bank app installed on their mobiles can transact their money in
the form of cash. Whereas, for cryptocurrencies, the technology used is blockchain, which
stores the virtual currency in wallets with utmost security.
Digital currencies don't need encryption, but users must secure their digital wallets with strong
passwords to make light of the risk of hacking or theft.
Digital wallet users are also required to secure their debit/credit cards with passwords. They can
use any medium to transact digital currency from their digital wallets or banking apps.
Digital currency is an e-form of currency notes and coins that you can store in a digital wallet.
And you have the opportunity to convert your digital currency into liquid cash by withdrawing
through an ATM.
On the other hand, cryptocurrencies are protected by strong encryption, and these are
generated with advanced blockchain technology to ensure the easy flow of transactions.
To start using cryptocurrency, you must have a bank account and digital currency in it. You can
use digital currency through an online exchange to get cryptocurrency for the equivalent value.
Regulatory Authority:
Digital currency is the e-form of fiat money and it’s supported by the central government. The
RBI (Reserve Bank of India) regulates the rupee in India, and the respective authorities control
all digital currency transactions. The cryptocurrency relies on a decentralized system and has
no concern with centralized regulation. But all trades are entered in a decentralized ledger,
which means it is available to every person to see.
Stability;
Digital currency is almost stable and easy to manage transactions because many people in the
global market practise it. Cryptocurrency is unstable because most companies have not started
accepting payments made through cryptocurrencies.
Transparency:
You need to pay a transaction fee with digital currency whenever you make a payment through
the digital wallet. But there is no such fee applicable via cryptocurrencies, and Blockchain

3. technology helps to diminish the expense . In addition to that no additional commission for the
third-party agents.
“Transfers through cryptocurrency are highly practicable when done through intercountry
remittances. Cryptocurrency can also be used to make large payments, which is generally
limited while using digital currencies.”