Tokenized Money Glossary
Digital Currency
Digital currency is a broad term for monetary value or money-like claims represented and transferred electronically.
Explanation
The term can refer to very different instruments, including central bank digital currencies, commercial bank deposits, tokenized deposits, stablecoins, and other privately issued digital monetary claims. These instruments differ in issuer, legal status, convertibility, settlement properties, and risk. StablecoinBeat should therefore use a more specific category whenever the institutional form of the money is known.
Why it matters
Broad digital-currency labels can conceal important differences in credit risk, settlement, redemption, and public versus private issuance.
Example
A CBDC and a dollar stablecoin can both be digital currencies while representing liabilities of entirely different institutions.
Related terms
Last reviewed: September 2026