Digital currency, like cryptocurrency, is a type of money that exists in digital form. It can be transferred instantly and is used through digital wallets on devices like phones or computers. Virtual currency is a subset of digital currency but has different functions and regulation issues. In India, many people are familiar with virtual currencies but have low awareness and security concerns. The lack of centralized regulation can lead to big changes in their value. The success and failure of virtual currencies in India are discussed in the paper, along with the challenges of banning them.