Digital currencies are unregulated currencies that are traded by individuals over blockchain networks. To understand a digital currency, one needs to first understand a blockchain network. Usually, companies have one central server that has all the information that is created and used everyday. Any threat or problems on this server and the entire network is at risk. A blockchain is a peer to peer network where people can work, interact and share information with each other. For anyone to hack into a system, he needs the permission of all the individual systems to hack in and steal information.
This is one major advantage that a blockchain has over a central server system. Digital currencies are the monies that are exchanged over a blockchain network. One needs to use a certiain mobile wallet for the same. Some countries do recognize digital currencies, but digital currencies are mostly unregulated. However, digital wallets of these currencies are said to be the safest as it is next to impossible to hack blockchains. Yes, Bitcoins have faced hacking attempts, but none have been successful.
So what is the advantage of a digital currency? The cost of using a digital currency is very very low (almost negligible). You are in complete control of the currency as there is no central controlling authority/ bank here. You choose who to trade with and whom to transfer your money to. Payments can be done directly using the currency without the need to share any personal information that people usually share in a bank transaction. This directly prevents any form of theft or identity theft. Also, these currencies can be encrypted, thus adding another layer of security. Digital currency exchanges allow people to convert their currencies to the local currency at costs lower than those charged by PayPal.
Digital currencies are currently being used in India, but not on a large scale. Countries like Japan see a trade of over $2 billion per annum and we hope to reach these levels soon. This is a new industry that is developing slowly and one must only aim to be the best in order to dominate the industry globally.