What is a Local Currency?

A local currency is the currency most commonly used within a country. This is usually the national currency. Thus, the U.S. dollar might be accepted in the United Kingdom, but the local currency there is the pound, since that is the national currency and the currency in which most transactions are settled. An exchange rate is available for converting most local currencies into the currency of another country, such as from the U.S. dollar to the Japanese yen.

Local Currency vs. Cryptocurrency

A local currency is mostly used within the borders of one country, while a cryptocurrency is not used within the borders of any single country. Instead, a cryptocurrency is intended to be used worldwide, and can be converted through a crypto exchange into a local currency, as needed.