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Electronic money (or digital money or eCurrency) refers to
cash and associated transactions implemented using 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 financial cryptography and technologies
enabling it.
While electronic money has been an interesting problem for
cryptography (see, for example, David Chaum's work), the use
of digital cash to date has been relatively low-scale. One
rare success has been Hong Kong's Octopus card system, which
started as a transit payment system and has grown into a widely
used electronic cash system. Another success is the Canadian
Interac network, which, as of the year 2000, surpassed cash
as a payment method at retail in Canada.
Electronic money and currency
Technically Electronic or Digital Money, also known as eCurrency,
is a representation or System of Debits and Credits used,
but not limited to exchange value within a another System
or as a stand alone System itself, online or offline. Electronic
money or eCurrency, is sometimes also used to refer to the
Electronic Currency Company itself. An Electronic can be an
independent Gold Backed Currency like e-Gold or Non-Gold Backed
like eeeCurrency or just like Euro before the legal tender
of Euro was introduced in 2002.
Some eCurrency Systems will sell to the end user directly,
such as Paypal, but many Systems either sell through their
own exclusive eCurrency Market Maker, such as e-gold and the
Omnipay System or eeeCurrency and the eCurrencyExchangers
System, or through an Independent Market Maker or eCurrency
Exchanger which might handle a range of Electronic Currency.
These Exchangers can be automated Systems such as the eCurrencyExchangers
System or manually operated Exchangers like Gold Age.
In the case of Octopus Card in Hong Kong, deposits work similar
to banks. After Octopus Card Limited receives money for deposit
from users, the money is deposited into banks, which is similar
to debit-card issuing banks redepositing money at central
banks.
Some community currencies, like some LETS systems, work with
electronic transactions. Cyclos Software allows the creation
of electronic community currencies.
Ripple monetary system is a project to develop a distributed
system of electronic money independent of the currency.
Most money in today’s world is electronic, and tangible
cash is beginning to become less and less frequent. With the
introduction of internet / online banking, debit cards, online
bill payments, and internet business, 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 retirement plans,
(such as the Canadian RRSP) and offer a variety of other services
without having to handle the physical cash or cheques. Customers
do not have to wait in lines, and this provides a lower hassle
environment.
Debit cards and online bill payments allow for the immediate
transfer of funds from an individual's personal account to
a businesses account, without any actual paper transfer of
money. This offers a great convenience to many people and
businesses alike.
See also
• e-gold
* Ripple monetary system
* Money
* E-commerce
* Anonymous internet banking
* Visa Cash
* Mondex
• EBTAccount.JPMorgan.com Login Account Access
This
article is licensed under the GNU
Free Documentation License.
It uses material from the Wikipedia
article "Internet Money".
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