With the rapid technological advancement in the world of communications, there has also been a steady evolution in financial transactions that manifests in the emergence of new types of money. The main goal behind this was to facilitate operations and minimize the loss of time, effort, and money. As a result, what is known as digital or encrypted currencies emerged, providing a new perspective on financial transactions that do not require the presence of monetary intermediaries and are also not under the supervision of central banks.
Digital currencies have succeeded in establishing themselves in the global financial market, and despite their ongoing risks, they still dominate the minds of many in the field of money trading and stock exchanges. Through this research, we clarify the definition of digital currencies, their origin, evolution, reasons for their spread, the reality of dealing with them, an overview of international recognition, as well as the risks associated with using digital currencies, along with some recommendations for regulating the use of digital currencies.