Unlike traditional fiat currency, digital currencies exist only in the digital domain. Theoretically, digital currencies can perform just like regular currency often used in availing goods and services.
Furthermore, digital currencies offer potential advantages as well. Users can experience faster transactions, lower transactional costs, higher transparency, and the ability to run on decentralized networks.
Digital currencies play a crucial role in the development of fintech. Even newer protocols are being implemented to mitigate some of the shortcomings of digital currencies, especially scalability.