Evolution and reform of currency/money has kept taking place since the birth of money. In the age of rapidly changing science and technology and in the time where computer has taken place, it is natural to imagine, think and search for the possibilities of a kind of currency which is more suitable for this contemporary age. This kind of currency is known as 'electronic currency'. Electroni currency trading is a growing industry as more and more people are purchasing items online in the form of electronic currency.
Electronic currency, which is also known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency refers to money that is exchanged only electronically. In other words, electronic currency is simply a unit of exchange using internet. Computer networks, internet and digital store value system is required to ensure the effectiveness of the exchange .
On the other hand, electronic currency allow a person to send and receive money instantly to family,
friends and business associates worldwide. Furthermore, it also can be used to make online payments 24 hours a day from anywhere. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money. EFT is a computer-based systems that is used to perform financial transactions electronically whereas direct deposit refers to the deposit of funds directly into a bank account as a form of payment.Electronic currency were being used by several companies. One of them is Click and Buy.In the year of 1999, Norbert Stangl founded FIRSTGATE Internet AG. The Internet payment system ClickandBuy is a full-service solution for e-payment and billing. It was launched in the year of 2000. Click and Buy offers the possibility to make safe and convenient purchases of Internet content and services.
PayPal is also one of the company that uses electronic currency. PayPal is an e-commerce business that allow payment to be made through internet. In other words, the customers may transfer their money through internet. Some other examples of companies that uses electronic currency include payloadz, peppercoin, paystone technologies, etc.
Benefits of Electronic Currency
There are pros and cons of using electronic currency. One of the benefit is convenience. The electronic currency is an online electronic cash systems that are operated through the Internet. It provides convenience to the user as well as the banker. This online system can be accessed through the Internet from anywhere in the world. Hence, the user does not have to actually go to the bank to transact any business. Meanwhile, the online system also provides convenience to the banker, as he does not have to deal with long queues of people. This will in turn increases the speed of transactions in financial organizations.
Another benefit of using electronic currency is that small-scale and local level merchants can also access and transact in the global market. Electronic currency truly globalizes the economy, since the user can download money into his cyber-wallet in any currency desired. The merchant can accept any currency and convert it to local currency when the cybercash is uploaded to the bank account.
Besides that, electronic currency provides privacy to the user as it is fully anonymous and untraceable digital cash. It gives the user with the confident that their user ID will not be revealed in anyways
Limitations of Electronic Currency
However, there will also be limitation in using electronic currency. One of them would be failure of technology where a breakdown of network may occur. Besides that, the this online electronic cash system may be defected by virus, worms and so on.
Other limitations of electronic cash include serious misuse of a stolen smart card. Criminals who have strong knowledge of the technology of these systems can easily misuse it, if a reliable security system is not deployed.
Last but not least, many pros and cons are bound to appear as the technology of electronic cash develops even further. However, overcoming the cons of the technology will make electronic currency a very convenient system and a widely accepted, revolutionary mode of cash.
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