Electronic Currency

Well, electonic currency is also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency which is exchanged only electronically. The transactions involves use of computer networks, the internet and digital stored value systems. As for example are Electronic Funds Transfer (EFT) and direct deposit. As for security, the private currecny may use gold as extra security, such as digital gold currency.

Electronic currency is precious metal-backed internet currency. Individual open an account to deposits money with an online electronic currency company that then converts the amount into gold bullion. The account holder can transfer ownership of some or all of that gold into someone else's electronic currency account. Ownership can be repeatedly transferred. Electronic currency has been widely used by perpetrators of pyramid scams. Swindlers demand payment in e-currency because, unlike with checks or credits cards, the charges clear instantly and cannot be cancelled. Experts estimate that about half of e-currency transactions are related to scams or online games.

An electronic currency system may be fully backed by gold (like e-gold), non-gold backed, or both gold and non-gold backed. Two major types of electronic currency their backed base. One is backed by precious metal such as e-gold is backed by gold .Another type of electronic currency is backed by hard currency like Pay Pal. Both of them are all called electronic currency.

Untraceable digital cash is here. It will become easier to use and more established in the next several years. It is indistinguishable from speech, so any laws intended to control it will almost certainly impinge on speech in general. While scare tactics may work to drive average users away from using digital cash, those operating on the margins have the most to gain and lose and will likely not be dissuaded by such laws. Not only have criminals rarely been dissuaded by tax and banking laws, but here the chances of getting caught are nearly zero. Boom markets in information of all kinds can be expected.


References:
http://osaka.law.miami.edu/~froomkin/articles/tcmay.htm
http://en.wikipedia.org/wiki/Electronic_currency


Prepared by Agu

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