The research aimed to shed light on the impactof the risks associated with using digital currencies. The concept of digital currencies and their character as a form of currency have been defined long with the challenges they faces. the potential future prospects of utilizing digital currencies in the economic sector have also been highlighted. The research employed an inductive- deductive methodology. the results indicated variations in the definition and legality of cryptocurrencies among the countries under consideration.  furthermore, the findings revealed several risks associated with digital currencies, such as fraud, money laundering, and terrorist financing. There is also confusion between the concept of blockchain and digital currencies , and the inaccurate use of the term ‘currency' for digital currencies . the research recommendations include introducing the new currency under the control of central banks, recognizing the right of nations to regulate financial transactions, and incorporating the new currency in to existing currency exchange markets to ensure financial and banking stability. Additionally, it is recommended to enhance awareness and education about digital currencies and foster international cooperation to develop an effective regulatory nation to regulate financial transactions, and incorporating the new currency in to existing currency exchange markets to ensure financial and banking stability. Additionally, it is recommended to enhance awareness and education about digital currencies and foster international cooperation to develop an effective regulatory framework that contributes to sustainable digital economic development