With the rapid technological advancement in the world of communications, the continuous development in financial transactions has also witnessed a new evolution represented by the emergence of new types of money. The primary goal behind this was to facilitate operations and reduce the loss of time, effort, and money. Consequently, what is known as digital or encrypted currencies emerged, providing a new perspective on financial transactions that do not require the presence of monetary intermediary institutions and also without oversight from central banks.
Digital currencies have successfully imposed themselves in the global financial market, and despite their ongoing risks, they still dominate the minds of many in the field of trading and stock exchanges. This research clarifies the definition of digital currencies, their origins, development, reasons for their spread, the reality of dealing with them, a glimpse of international recognition, as well as the risks associated with the use of digital currencies, along with some recommendations for regulating transactions with digital currencies.