Posted by: frieda88 | July 6, 2009

Electronic Currency

Electronic currency

 

a.k.a. e-currency, electronic cash, electronic money, digital money, digital cash or digital currency.

as we can see directly in its name, is actually currency or money used on the internet related field.

E-currency are often used in online trading and investing which involves use of computer networks, the internet and digital stored value systems.

E-currency provides a new payment method on the internet so as avoid using credit card, whereby users risk exposing their credit card information to unknown merchants.

Technically, e-currency is a representation, or a system of debits and credits used to exchange value, within another system or itself as a stand alone system, online or offline.

There are two major types of e-currency in the world. The major different is their backed base.

How e-currency works

An individual opens an account with an online e-currency company and “deposits” money in the account. The e-currency company then converts the account holders’ deposits into gold or silver bullion, or whatever e-currency used, stored in the bank. Via the Internet, the account holder can transfer ownership the e-gold or other e-currency into someone else’s e-currency account or used for online trading. 

 

 

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Responses

  1. At least it’s a better way to prevent our financial data being stolen, easily


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