DGCs are known as private currency as they are not issued by governments.

Some providers, like e-gold, do not sell DGC directly to clients. In the case of an e-gold account, DGC must be bought and sold via a third party digital gold currency exchanger.

Digital currencies backed by gold are the most popular, although e-gold, e-Bullion, e-dinar, GoldMoney and Crowne Gold also provide silver backed currency or storage. Other digital silver currencies include the eLibertyDollar and Phoenix Silver. In addition to gold and silver, e-gold supply platinum and palladium backed digital currency.

DGC providers and exchangers have been accused of being a medium for money laundering. Because digital gold currency providers are not banks, they are not legally required to perform various sorts of background checks. In January 2006, BusinessWeek reported on the use of the e-gold system by ShadowCrew, an online gang involved in massive identity theft and fraud [2]. However, allegations that e-gold is a medium for money laundering and crime are strongly refuted by its Chairman and founder, Dr. Douglas Jackson.

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