Digital currency is a form of virtual currency or medium of exchange that is electronically created and stored. Some digital currencies, such as Bitcoin, are cryptocurrencies. Like traditional money these currencies may be used to buy physical goods and services but could also be restricted to certain communities such as for example for use inside an on-line game or social network.
Regulators in several countries have warned against their use and some have taken concrete regulatory measures to dissuade users.
The non-cryptocurrencies are all centralized. As such, they may be shut down or seized by a government at any time.
The more anonymous a currency is, the more attractive it is to criminals, regardless of the intentions of its creators.
Anyone with the right skills can issue Digital Currency. It can be compared to issuing bonds with zero interest rate, no real security behind them and thus no real obligation for the issuer to pay back the amount. This means that the issuer who succeeds in selling his currency to other users, can earn a great deal of actual money at the expense of his users.