Electronic Currency

This week I would like to introduce to you the "electronic currency". It is widely used in nowadays world. But what is electronic currency? And, what is it used for?

What is electronic currency?

Electronic currency also known as electronic money, digital money, e-money and so on. Electronic currency can only be exchanged electronically. Typically, it involves the use of Internet and digital stored value system. It is a computerized money system and use to replace the current physical paper money currency. There are some success examples of electronic currency which are implemented in Hong Kong's octopus card system and Singapore's ezlink card system.

Advantages of Using Electronic Currency

There are many advantages for using electronic currency. The first advantage, electronic currency is cheaper. It allows transactions take place at a low costs and even the most expensive digital currency cost lower than the credit card. For those transactions which have high cost previously due to time, effort, and money are now feasible by using electronic currency since it is cheaper. Besides that, the people who are using the electronic currency can make a significant savings compare to those who always use the credit card.

Another advantage is electronic currency is faster. Electronic currency make a instantaneous and nonconvertible transaction that solve the vulnerable position of the merchant since the credit card at their store can be stolen by hacker. If you want to transfer the money to your friends or family, with a few seconds the transaction is done and your friends or family can withdraw the cash from the ATM. That's fast.

Electronic Currency is international. Credit card or paypal are hard to applied in different country. Therefore, electronic currency acts an important role in helping the international enterprenuer to sell their product or service to worldwide. It is because electronic currency make an instantaneous transfer of money anywhere in the world with the easily and quick convert to the cash of any country.

Issues of Electronic Currency

Eventhough, there are many advantages that provided by electronic currency, but still there are some issues that arise from electronic currency such as how to levy tax, the possible ease of money laundering, exchange rate instabilities and shortage of money supplies.

Future Evolution

The future focus of the electronic currency developement are:

1. Being able to use it through a wider range of hardware such as secured credit cards
   
2. Linked bank accounts that would generally be used over an internet means, for exchange with a secure micropayment system such as in large corporations