With the rapid technological development in the world of communications, there has also been a steady development in financial transactions, represented by the emergence of new types of money. The underlying goal was to facilitate operations and reduce the loss of time, effort, and money. As a result, what is known as digital or encrypted currencies emerged, which have provided a new perspective on financial transactions that do not require the presence of monetary mediation institutions and are also not under the control of central banks.
Digital currencies have succeeded in imposing 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 origins, development, reasons for their spread, the reality of dealing with them, an overview of international recognition of them, as well as the risks associated with using digital currencies, along with some recommendations for regulating transactions involving digital currencies.