Electronic currency is also known as electronic money, electronic cash, digital money, digital cash or digital currency. It is used over the Internet, email, or personal computer to other workstations in the form of secured payments of "cash" that is virtually untraceable to the user. It is backed by real currency from real banks.
The way e-currency works is similar to that of electronic fund transfers done between banks. The user first must have an e-currency software program and an e-currency bank account from which e-currency can be withdrawn or deposited. The user withdraws the e-currency from the account onto her computer and spends it in the Internet without being traced or having personal information available to other parties that are involved in the process. The recipients of the e-currency send the money to their bank account as with depositing "real" cash.
Other than making purchases on the Internet, e-currency can also be found used in entertainment sites - on "gambling tables" in Internet casinos such as PAF Casino and Internet Casino. E-currency allows the exchange of money to be conducted in the same way as in real casinos.
With e-currency, consumers will be more comfortable with transactions over the Internet as it is a one-time transaction that cannot be traced back to the user, whereas with credit cards, hackers can obtain information of the card holder and commit frauds.
With the appearance of e-currency, the need for commercial banks to be involved in electronic banking and to back the electronic currencies becomes more apparent. However, there remains a skeptical view about having monetary transactions done over the Internet as it is a fairly public domain where there is easy access. Thus increasing and promoting commercial bank's interest in the Internet and conducting business over the Internet is necessary in order to further the development of e-currency and commerce in the Internet, as well as improving cryptography and security features of the systems.
E-currency is not completely anonymous as with hard cash since there is always the computer and the network, which can be traced. Also, there is the issue of possible criminal activity within the system by allowing criminals to spend illegal money easier if e-currency untraceable. These issues may only be addressable by some type of cyberspace regulations or laws that regulate the transactions and watch for signs of trouble.
The way e-currency works is similar to that of electronic fund transfers done between banks. The user first must have an e-currency software program and an e-currency bank account from which e-currency can be withdrawn or deposited. The user withdraws the e-currency from the account onto her computer and spends it in the Internet without being traced or having personal information available to other parties that are involved in the process. The recipients of the e-currency send the money to their bank account as with depositing "real" cash.
Other than making purchases on the Internet, e-currency can also be found used in entertainment sites - on "gambling tables" in Internet casinos such as PAF Casino and Internet Casino. E-currency allows the exchange of money to be conducted in the same way as in real casinos.
With e-currency, consumers will be more comfortable with transactions over the Internet as it is a one-time transaction that cannot be traced back to the user, whereas with credit cards, hackers can obtain information of the card holder and commit frauds.
With the appearance of e-currency, the need for commercial banks to be involved in electronic banking and to back the electronic currencies becomes more apparent. However, there remains a skeptical view about having monetary transactions done over the Internet as it is a fairly public domain where there is easy access. Thus increasing and promoting commercial bank's interest in the Internet and conducting business over the Internet is necessary in order to further the development of e-currency and commerce in the Internet, as well as improving cryptography and security features of the systems.
E-currency is not completely anonymous as with hard cash since there is always the computer and the network, which can be traced. Also, there is the issue of possible criminal activity within the system by allowing criminals to spend illegal money easier if e-currency untraceable. These issues may only be addressable by some type of cyberspace regulations or laws that regulate the transactions and watch for signs of trouble.
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