In 2026, "digital currency" is an umbrella term that includes decentralized like Bitcoin and government-issued Central Bank Digital Currencies (CBDCs) .

Unlike crypto, you usually download an app directly from a sanctioned financial institution or the central bank (e.g., the eRupee App by SBI in India or the e-CNY app in China).

Robinhood and PayPal offer simpler interfaces but may have limited withdrawal options.

As of early 2026, CBDCs are only fully active in a limited number of countries, including China (e-CNY), The Bahamas (Sand Dollar), and India (Digital Rupee).

CBDCs are digital versions of a country’s official currency (like the digital Yuan or e-Rupee). They are centralized and regulated by the state.