The period following the 2008–2009 global financial crisis witnessed the emergence of digital money (electronic currency existing only in computer networks) as a fundamental innovation addressing the structural failings of traditional financial systems. This chapter examines the evolution from Bitcoin’s initial blockchain (cryptographically secured transaction ledger) through Ethereum’s smart contracts (self-executing digital agreements) to third-generation altcoins (alternative cryptocurrencies) that offer improved speed and lower costs. Through analysis of transaction throughput data and adoption metrics, we demonstrate how these innovations enable the creation of financial intermediaries that avoid traditional system vulnerabilities such as contagion and moral hazard. The emergence of this parallel financial system, operating entirely in cyberspace, represents the most significant monetary innovation since the abandonment of the gold standard, with total market capitalization growing from zero in 2009 to over $2.3 trillion by 2024.