Electronic money (digital money or eCurrency) refers to species and operations implemented by electronic means. Typically, this involves the use of computer networks (such as the Internet) and digital stored value systems. Electronic Funds Transfer (EFT) is an example of electronic money. It is also a collective term for technologies of cryptography and enable it.
Although electronic money has been an interesting challenge for cryptography (see, for example, David Chaum work), the use of digital cash to date has been relatively small scale. One of the few success has been Hong Kong system of Octopus card, which began as a system for payment of transit and became widely used electronic payment system. Another success was the Canadian Interac network, which as of 2000, exceeded the cash payment method to retail in Canada.
Electronic Money and Currency
Technically, electronic or digital money, also known as eCurrency, is a system of representation or debits and credits used, but not limited to the exchange value in another system or a single system itself, online or offline. eCurrency or electronic money is also sometimes used to refer to electronic money Society itself. Electronics can be an independent Fort Gold as the currency e-gold or not backed by gold as eeeCurrency or just before the euro as legal tender the Euro was introduced in 2002.
Some eCurrency systems sell to the end user directly, such as Paypal, but many systems or to sell through their own exclusive eCurrency market, such as e-Gold and Omnipay or eeeCurrency system and the system eCurrencyExchangers , Or through a market Maker or exchange eCurrency that could cover a range of electronic money. These interchanges can be automated systems such as System eCurrencyExchangers or manually exchangers as the golden age.
In the case of the Octopus Card in Hong Kong, deposits work similar to banks. After Octopus Card Limited receives money for deposit from users, money is deposited in banks, which is similar to a debit card issuing banks redepositing money from central banks. Some currencies, as some LETS systems, working with electronic transactions. Cyclos software allows the creation of the electronic community currencies. Ripple monetary system is a project to develop a distributed system of electronic money independent of the currency.
Benefits and Advantages of eCurrency
More money in the world today is electronic, and species concrete starts to become less frequent. With the introduction of the Internet / online banking, debit cards, bill payments online, and Internet companies, paper money is becoming a thing of the past.
Banks now offer many services whereby a customer can transfer funds, purchase stocks, contribute to their pension (as the Canadian RRSP) and offer a variety of other services without having to manage physical cash or checks. Customers do not have to wait in lines, thus providing a lower hassle.
Debit cards and paying bills online to allow the immediate transfer of funds from one individual account to a company without any paper money transfer. This offers great convenience to many people and businesses.
Issues and Disadvantages of eCurrency
Although there are many advantages to digital cash, there are also many disadvantages. They include fraud, failure of technology, and loss of human interaction. Digital cash fraud has been a pressing issue in recent years. Hacking bank accounts and illegal extraction of bank led to a widespread invasion of privacy, and encouraged identity theft.
There is also a pressing issue regarding digital technology in cash. The outages, loss of documents, software and undependable often cause a major setback in the advancement of technology.
The largest demographic in society, the baby boomers, have been reluctant to adopt the many advantages of digital cash. This is due to the loss of human interaction that often occurs when digital cash is used to its full potential. Therefore, what has deterred a large segment of global society of technological advantage.
Future Directions
The main objective of digital cash is able to spend through various means such as secured credit cards, bank accounts linked to be used on the Internet a medium of exchange to a system of micro payment as in large companies (PayPal).
Future developments of networking in terms of digital cash, a company is named Digicash on the creation of an e-cash system that would allow an e-issuer in cash to buy electronic parts at a certain value . When they purchased, they are purchased under its name and stored on their computers or their online identity. When expenses of the fund because it is linked to e-cash society, it provides everything that is bought in terms through the issuer at any time since the company knows your information, and the direct purchase of your home.