What are the 4 types of digital money?

The four main types of digital money are:

1. 🏦 Central Bank Digital Currency (CBDC)
   • Issued and regulated by a country’s central bank.
   • Example: The Digital Yuan (China) or Digital Rupee (India).
   • It’s an official digital version of national currency (like digital cash).
2. 💳 Cryptocurrency
   • Decentralized digital currency based on blockchain technology.
   • Not controlled by any government or bank.
   • Example: Bitcoin, Ethereum, Litecoin.
3. 💰 Stablecoins
   • A type of cryptocurrency that’s tied (“pegged”) to a stable asset like the US dollar or gold.
   • Designed to reduce price volatility.
   • Example: USDT (Tether), USDC (USD Coin).
4. 🏧 E-money (Electronic Money)
   • Digital value stored electronically and used for online payments.
   • Typically issued by private companies or banks.
   • Example: PayPal balance, M-Pesa, Paytm Wallet.