EleCtrOnic CurReNcy

In these recent years, electronic currency has taken the place of credit cards and become the most popular means of payment on electronic commerce. The main problem causes the decrease usage of credit card is that the purchasers are required to give their personal information and credit card number to merchant or payment service provider when they purchase online. The customers have the feeling of unsecured as they are afraid of losing anonymity and privacy and this contributes to the success of electronic currency.

What is electronic currency? Electronic currency (also known as electronic money) is a money or script transferred electronically. It involves use of computer networks, the internet or digitally stored value systems. Examples of electronic currency which commonly used by public are Hong Kong's Octopus Card and Malaysia’s Touch n Go card. Hong Kong’s Octopus card, for example, can used to pay for public transport and even purchase in offline store. What the users need to do is just simply deposit the money into. After the Octopus Card Limited receives the money, it will deposit into banks, which is similar to debit-card-issuing banks which redeposit the money at central banks.

The advantage of using electronic currency is that, it is totally anonymous whereby the perpetrators are unable to obtain information about customers when the electronic money sent from a customer to a merchant. Besides, electronic currency payment which is working with password operating system is much more secured compared to other payment methods. Anyone who wants to operate it must give the passwords in prior. The password might be the biometric print of user’s finger, signature or others. Thus, if the electronic currency is unfortunately lost or stolen, the perpetrator will not be able to operate it also as he/she does not have the owner’s password. This feature, in turns, helps to enhance the confidence and security of users when using electronic money. In short, electronic money is securer and easier than other payment methods.

On the other hand, there are some drawbacks with the usage of electronic currency as well. For instance, the transfer of electronic money may raise the local issues on how to levy taxes on the users and merchants and the possible ease of money laundering. Furthermore, the usage of electronic currency may tend to a potential macroeconomic effect whereby the shortage of money supplies may occur as the demand for electronic money may exceed the real cash available.

If you are interested to know about electronic currency, feel free to surf the websites as below:
i) Future of Electronic Currency

ii) Electronic Money Development