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Electronic currency or electronic currency refers to digital currency stored electronically in computers and mobile devices. Unlike conventional paper currency, which involves physical storage, e-currency remains secure because transactions occur entirely between computers connected through the Internet.
E-CURRENCY
The US Dollar is no longer a reserve currency of any country. It has been used as an international medium of exchange since World War II. However, it was not until 1971 that the United States ceased using dollars to pay its own debts. The dollar’s status as world money has been challenged by many economists and some government officials. Some argue that the current system is unsustainable because it depends on foreign countries for a stable source of funds. There are also concerns about how much power individual nations have over the Federal Reserve System and whether inflation can be sufficiently controlled without increasing taxes. Others point out that there are inherent flaws in the fiat monetary system such as deflation and hyperinflation.
ELECTRONIC PAYMENTS
Electronic payments provide a way to make payment online, with credit cards being one common method. Online banking allows users to conduct routine financial activities from home via the internet. This includes checking account balances, paying bills, transferring money between accounts and making deposits. In addition, people can make purchases online and receive money directly into their bank accounts.
HISTORY OF E-CURRENCIES
Today’s e-currencies first appeared during the early 1990s, when the concept of online banking became popular. Digital cash systems were developed by banks in Australia and New Zealand, however they were never widely adopted. Banks in these two countries instead began offering customers access to their accounts through the telephone. One major difference with online banking versus telephone banking is that an online transaction requires less time than a telephone call. Thus, online banking allows the customer to complete a transaction more quickly and efficiently.
FUTURE OF E-CURRENCY
A growing number of individuals and businesses use electronic forms of payment every day. While this trend could continue, future e-currencies may include a combination of different technologies. For example, the popularity of mobile phones means that cell phone carriers will likely offer a form of prepaid debit card in the near future. These cards would allow individuals to spend money online at merchants who accept Visa or MasterCard. They could also act like gift cards, allowing people to send money to others.
CREDIT CARDS AND INTERNET BANKING
Credit cards are generally accepted almost anywhere you can find a retail store. Many people prefer them because they do not need to carry cash around. They also allow the user to transfer money to other people or companies relatively easily. Since the 1980s, most major retailers have begun accepting credit cards in place of cash for purchases. To obtain a card, consumers must apply for a line of credit issued by a bank. The bank then provides a revolving line of credit that allows the consumer to pay back interest costs.
As long as the balance does not exceed the limit, the consumer can make purchases up to that amount. If the balance goes above the limit, fees are charged. Because many consumers buy things online, the growth of electronic commerce has coincided with the growth of credit cards. At present, approximately 40% of all transactions made within the United States are done electronically.
THE EMERGENCE OF MOBILE DEBIT CARD
Mobile devices such as smartphones and tablets have become increasingly important in everyday life. Smartphones are used for everything from playing games to doing work. According to Gartner, smartphone shipments grew 35 percent last year, while tablet shipments increased 65 percent. Tablets have emerged as a viable alternative to desktop computers for both business and personal use. With the rise of tablets, it is no surprise that mobile payment apps have been rapidly gaining in popularity. Last year, research firm Nielson found that nearly half (42%) of U.S. adults reported using some form of digital wallet on their cellphone. That represents a 41 percent increase over 2012. More importantly, the study showed that 71 percent of those who own a mobile device say they’ve used their phones to shop.
Conclusion
We are heading towards a new era where money will be electronic, with an open source currency called ‘bits’, which is already being used today by thousands of users worldwide. It is known as Bitcoin, but there are dozens of cryptocurrencies currently available.