The present invention provides a circulation method of digital currencies which can satisfy the requirements of the actual currency circulation, and enables the processing efficiency of the digital currency circulation to be improved. The method comprises the steps of using a payment terminal to select the digital currency word strings from a digital currency safe deposit box of the payment terminal according to the payment amount of money and a predefined matching strategy, then forming a payment source digital currency word string set, and then sending the payment source digital currency word string set to a management terminal, wherein the digital currency word strings comprise the amount of money fields and the owner identifier fields, one or the plurality of digital currency word strings of which the owner identifiers are the payment terminal are stored in the digital currency safe deposit box of the payment terminal; using the management terminal to register the digital currency word strings in the payment source digital currency word string set as the invalid states, then generating a payment destination digital currency word string according to the payment amount of money, and sending the payment destination digital currency word string to the collection terminal, wherein the amount of money of the payment destination digital currency word string is the payment amount of money, and the owner identifier is the collection terminal.