Banks have been able to move currency electronically for decades, only recently that the average consumer had the capability to use electronic transfers in any meaningful way. With the advancement in technology and more computer savvy individuals, global interaction is made available at vastly reduced cost. The Internet and E-commerce have become an commercial area, where daily payment are rendered for goods, services, information and investment. As a result, electronic payments are becoming the central part to online business between customer and seller.increasingly
Electronic currency (e-currency) can be defined as money or scrip that is exchanged electronically by using the computer networks, internet and digital stored value systems. Electronic currency is essentially a system of representation of debits and credits used to exchange value that allow a person to pay for goods and services by transmitting a number from one computer to another. It is also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency. It has become widely used due to the emerging of e-commerce and many people use electronic currency in conducting e-commerce transactions.
Characteristics of Electronic Currency
There are some characteristics of electronic currency that making it become common among users. Firstly, the transfer of electronic currency is done at instant or 'real time', thus the transaction cannot be reversed. Once the transfer of electronic currency has been conducted, it cannot be canceled of by reversing the transfer of electronic currency process. Secondly, all the electronic currency transactions are conducted in private and anonymous way for both the sender and receiver. The transfer of electronic currency would not show the personal details of both parties, it would only show number, nick names or e-mail addresses, which do not reveal any privacy of the buyers.
Benefit of Electronic Currency:
- Electronic currency trading allows you to do business and earn with only a few dollars of investment. Electronic currency trading does not demand much and it is really up to you if you want increase your investment or not. With electronic currency trading you are given many opportunities to profit without spending too much on investment.
- Electronic currency trading has a low transaction cost. Unlike other business that eat up your profit with exorbitant fees, electronic currency trading allows you to do business with minimal fees giving you more profit and more money for you.
- Electronic currency trading is versatility and convenience to the persons involved. You can work with any electronic currency trading market that best suits your needs for any time of day. The electronic currency trading business does not sleep so night or day, the world is merely at your fingertips.
- Fraud over electronic currency trading has been a pressing issue in recent years. Hacking into bank accounts and illegal retrieval of banking records has led to a widespread invasion of privacy and has promoted identity theft.
- There is also pressing issue regarding the technology involved in electronic currency trading. Power failures, loss of records and undependable software often cause a major setback in promoting technology.