What Makes a Currency 'Digital'?

A digital currency is like money that lives on a phone or computer. It doesn't need to be printed or held in your hand, you can send it instantly to someone else, just like sending a message.

Imagine you have a piggy bank that's connected to the internet. When you want to give money to a friend, you don’t take coins out and count them, you press a button on your phone, and the money moves automatically from your account to theirs.

This kind of money is called digital currency because it exists in the digital world.