Electronic Currency

What is Electronic Currency?

Electronic currency also commonly known as e-currency, e-money, electronic cash, digital money, digital cash or digital currency. It is the money screamed across the wires, its provenance fading in a maze of electronic transfers, which shifted it, hid it, broke it up into manageable wags which would be withdrawn and redeposited elsewhere, obliterating the trail. The example of electronic currency is the Electronics Funds Transfer (EFT) and direct deposit.

Benefits of E-currency

There are several of benefits of using e-currency service on the internet like e-gold and Paypal. The e-currency can be used on the internet as the same way as people use cash in normal life transaction. E-currency is use on related commercial applications such as shopping over internet or maybe other investment over internet. Besides, e-currency is the other option of payment method for consumer to use other than using only credit card and credit card that might left one with whole life of debts. This service do provides those users a quick, simple and safe way for shopping instead of showing their credit card information to merchant who they do not know.

Moreover, it is easy for trading occur over internet between buyers and sellers to use this e-currency service. They just have to click on the confirm button and the deal is done. None of the payment methods in the world right now can provide this kind of efficiency capability.

For your information, the e-currency has two major types in the world. The major different is their backed base. One is backed by precious metal such as e-gold is backed by gold. Another type pf e-currency is backed by hard currency like Paypal. Both of them are same name as E-currency.

Cons of E-currency

But on the other hand, they are some cons about having different type of currency over the internet. The e-currency backed by hard currency, Paypal, somehow been restricted in some regional area which is defined by the currency they choose to be backed. The major reason is the floating character of exchange rate between the hard currency and the local currency often used by the internet users. For instances, an internet users who lives in Japan may lose money when processing the currency exchange from USD (United States Dollar) to JPY (Japanese Yen) if he does not watch out the international economics careful enough.

In the coming future, the using of e-currency will be the trend in the coming future like credit card application before.

Souces:

http://www.giexc.com/

http://en.wikipedia.org/wiki/Electronic_money

http://www.adl.org/internet/e_currency.asp