Saturday, July 4, 2009

Electronic Currency


Electronic currency, or also known as e-currency, is the electronic money that uses to make payment on internet, such as e-gold and PayPal. Basically, there are 2 types of electronic currency, where the different of these 2 types are their backed base. For instance, e-gold is backed by gold, whereas PayPal is backed by hard currency.

There are benefits for using e-currency, which are:

E-currency can be used on the internet related commercial applications
By using electronic currency, we could buy things through online, without applying credit card, or any others card.

Credit card information will be secure
We do not know how well are the sellers are working on the security of our data. Thus, through using electronic currency, our credit card information could be secured. This is because electronic currency does not need any of your credit card information. All you need to do is to buy the pin number from the shop, and key it into the website that you wishes to make payment with.

Convenient and efficient while making payment
Both sellers and buyers could just click “confirm” button to finish the process. No further steps are needed.

In conclusion, e-currency is value of money in the form of electronic, stored in a system. Merchants do not need to communicate with the bank to get their money. In fact, they will just need to claim it from the electronic currency issuers, such as e-gold and PayPal.

Additional Information:

2 comments:

  1. Then are those money that trade in game consider as e-currency too?

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  2. E-currency is electronic money that carry a value for real life. Those money in game is not consider as e-currency, but the cash that used to buy cash item in the game is considered as e-currency. Because you need to use real cash to buy it.

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