Electronic currency

Electronic currency is an inexact term used to describe an electronic transaction that functions more like a cash exchange and less like a credit card charge. Electronic currency is also known as electronic cash, e-money, digital cash or digital currency. It is a technology that promises to bring this level of ease of use and anonymity to cashless transactions whether they happen on the internet or face-to-face. The Internet needs "global electronic currencies" that can serve as universal media of exchange, global units of account, and stable stores of value. The technological leap of electronic currency is that it breaks the dependent relationship between the buyer and seller.

By using E-payment it provide a range of benefits to the user such as increase the efficiency of the transaction. Banks now offer many services whereby a customer can transfer funds, purchase stocks, and offer a variety of other services without having to handle physical cash or checks. Customers do not have to wait in lines. This provides a lower-hassle environment. Debit cards and online bill payments allow immediate transfer of funds from an individual's personal account to a business's account without any actual paper transfer of money. This offers a great convenience to many people and businesses alike. Do business sell and buy in internet more flexibility and low cost.

There are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and loss of human interaction. Fraud over electronic currency 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. It happens when the consumer misplaces his or her private key so that the fraudster can withdraw their money from bank and without obtaining consent from the user. Electronic currency lack of records and identifies who spends or take money so that it may result the fraudster easier to process illegal activity over Internet such as laundering money and tax evasion.
The main focuses of electronic currency development are being able to use it through a wider range of hardware such as secured credit cards, linked bank accounts that would generally be used over an internet means, for exchange with a secure micro payment system such as in large corporations (PayPal)..Theoretical developments in the area of decentralized money are underway that may rival traditional, centralized money.