Electronic Currency refers to the involvement of computer networks, either Internet or digital stored value systems, engages in exchanging money or scrip electronically. It is sometimes known as e-money, electronic cash, digital money and so forth. Typical examples of electronic currency are Electronic Fund Transfer (EFT) and direct deposit. Electronic currency allows Internet-based purchase and sales transactions involving almost anything to be safely conducted at lightning speed rather than conventional means of payment in the non-cyber world.

Hereon, a lot of systems will sell their electronic currency directly to the end user, such as Paypal and WebMoney. Contrary, the other systems such as e-gold, will sell their currency through third party digital currency exchanger. E-gold is classified as the most widely use and accepted currency exchanger today on the Internet.

In the rough, there are two distinct types of electronic currency, i.e. identified e-money and anonymous e-money or known as digital cash. Identified e-money contains information divulging the identity of the person who originally withdrew money from the bank and enables banks to track movement of the money as it goes around the economy. On the other hand, anonymous e-money is spent or given away without leaving any transaction trail once it is withdrawn because it works just like real paper cash. Moreover, each type of the e-money mentioned above can be transacted in two ways: online e-money and offline e-money. Online means interaction with a bank (via modem or network) is required in order to conduct a transaction with third party. The latter refers to conducting a transaction without having to directly involve a bank.

The Electronic Currency Trading System (ECTS)

An electronic currency trading investment platform that provides its client a better way to trade foreign currencies against the strength and weakness of the US dollar. With the utilization of its database of historical price patterns and technical indicators, the system allows for the recognition of entry positions with maximum profit potential. The six major currencies traded by ECTS include Euro, Yen, Australian $, Canadian $, Swiss Franc and the British Pound.

Pros and Cons

With the use of Electronic currency, there are some benefits provided to the users such as convenience and privacy, increased efficiency of transactions, lower transaction fees, and new business opportunities with the expansion of economic activities on the Internet. Nevertheless, there are also some potential issues raises by the used of electronic currency. The transfer of digital currencies triggers local issues such as how taxes should be levied or the possible ease of money laundering. Furthermore, the effects bring along with macroeconomic include exchange rate instabilities due to fluctuation and shortage of money supplies (the possibility that total digital cash exceeds the real cash available).

In short, E-currency has become the first bonanza of the 21st century which provides much more safeguards than conventional means of payment. However, some cyberspace regulations should be applied in order to address those potential issues that arise from e-currency.

~ References ~

• http://electroniccurrencytradingsystem.com/
  

• http://en.wikipedia.org/wiki/Electronic_money
  

• http://ezinearticles.com/?E-Currency-Exchange:-The-First-Bonanza-of-the-21st-Century?&id=62820

• http://gold-pages.net/Digital_Currency/index.html