Yes, this is a digital painting. I thought I would try out Photoshop CS5's Painting brushes to see how they work compared to Corel Painter. I added the canvas texture to it just to add a more personal touch.
Many people consider digital art as not true art and I tend to agree since manipulating color on a computer is non critical - you can delete, go back, erase, color correct, etc. But, it can be fun and when you work for a living in the digital world it is almost mandatory to know.