Electronic currency also know as electronic money, electronic cash or digital currency. It refers to money which is exchanged only electronically. Normally, it involves use of computer networds, the internet and digital stored value systems. For example, the Electronic Funds Transfer (EFT) and Direct Deposit. It is also a collective term for financial cryptography and technologies enabling it. Nowadys, many companies that provide onlie payment can make through the electronic currency.
Besides, it is being able to use it through a wider range of hardware such as secured credit cards and linked bank accounts that would generally be used over an internet means, for exchange with a secure micropayment system such as in large corporations (Paypal). Paypal is an e-commerce business allowing payments and money transfer to be made through the Internet.
Electronic currency can provide many benefits such as convenience and privacy, increased efficiency of transactions, lower transaction fees, new business opportunities with the expansion of economic activities on the Internet. Although it have a lot of benefits but there are many potential problems with the use of it. One of the problems is the happen of the fraud. If a consumer somehow misplaces his private key and a perpetrator uses it to withdraw funds, the bank would never jnow and the consumer would be liable. For example, credit cards have limited the consumer’s liability for unauthorized activity to a certain amount. It is important to protect our security from the hacker. Although fraud is a potential drawback of electronic currency, this risk is no greater than the traditional forms of payment.
Thus, electronic currency is important as a payment through the Internet and is should be secure by the good security system.
Besides, it is being able to use it through a wider range of hardware such as secured credit cards and linked bank accounts that would generally be used over an internet means, for exchange with a secure micropayment system such as in large corporations (Paypal). Paypal is an e-commerce business allowing payments and money transfer to be made through the Internet.
Electronic currency can provide many benefits such as convenience and privacy, increased efficiency of transactions, lower transaction fees, new business opportunities with the expansion of economic activities on the Internet. Although it have a lot of benefits but there are many potential problems with the use of it. One of the problems is the happen of the fraud. If a consumer somehow misplaces his private key and a perpetrator uses it to withdraw funds, the bank would never jnow and the consumer would be liable. For example, credit cards have limited the consumer’s liability for unauthorized activity to a certain amount. It is important to protect our security from the hacker. Although fraud is a potential drawback of electronic currency, this risk is no greater than the traditional forms of payment.
Thus, electronic currency is important as a payment through the Internet and is should be secure by the good security system.
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