Electronic Currency

In year 1999, electronic currency was officially accepted by the countries of the European Union to simplify business by eliminating exchange rates. It is one of the potion of e-commerce. E-currency also  known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency. Besides, it is also a collective term for financial cryptography and technologies enabling it.It refers to money or scrip that will only appear when doing the electronically exchanged. Normally, this includes the use of computer networks, the internet and digital stored value systems. The examples for electronic currency are electronic Funds Transfer (EFT), digital gold currency, virtual currency and direct deposit. 

Electronic currency allows its holder to buy the goods and the services provides by the people who are offering in the internet. Thus, there are come out a term that is electronic currency trading which means buying and selling of this internet money. It just like in our daily life monetary currencies. After that, some system have appear, such as technically electronic. It is a representation or a system of debits and credits and used to exchange value within another system, or itself as a self operate system whether online or offline. Providers always refers as the term of electronic money. A private currency may use gold to provide extra security, such as digital gold currency. 

We can find from the internet that are many systems sell their electronic currency directly to the end user, such as Gogopay, Paypal, WebMoney and Wirex. Apart from that, Liberty Reserve provides the system sell through third party digital currency exchangers. 

In conclusion, they are many benefits we can gain by using e-currency, such as convenience and privacy, efficient transactions, decrease the transaction cost, increase the business opportunities with the spread of economic activities on the Internet, etc. However, it is also raise up some issues. For instance, how to levy taxes during the transfer of digital currencies. Besides, instability of exchange rate and shortage of money supplies (total amount of digital cash versus total amount of real cash available and normally the possibility that digital cash could more than the real cash exist). Thus, the available of cyber laws is needed to regulate the transactions and overcome the issues.

Reference:


1) http://www.rmvalues.com/bank/e-money.html
2) http://www.selfseo.com/story-6264.php
3) http://en.wikipedia.org/wiki/E-currency
4) http://www.romow.com/business-blog/benefits-of-e-currency-trading/