With the rapid technological development in the world of communications, the steady evolution in financial transactions has also witnessed a new development represented in the emergence of new types of money. The underlying goal 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 are also not under the supervision of 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 money trading and stock exchanges. This research clarifies the definition of digital currencies, their emergence, development, reasons for their spread, the reality of transactions involving 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.