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Which is the best description of electronic money?
Electronic money, or e-money, is the money balance recorded electronically on a stored-value card. Progressively, People are using computer networks and spend for goods and services with electronic money. In 1983, a research paper by David Chaum introduced the idea of digital cash [ 4 ]. Every day we face the retail money problem.
Is there such a thing as e money?
E-money products can be hardware-based or software-based, depending on the technology used to store the monetary value. E-money encourages cryptocurrency which is basically IT and internet based and intends to replace classic money, currency and all other form of transactions.
How is electronic money an alternative to paper money?
In an electronic payment system a user can reduce the problem of the retail money. Every user must bear a small weightless card which will be made with his/her NID. When need to purchase something, just give the finger print and the enter the amount to transact. For the security purpose user can track the card using the mobile phone.
What are the effects of electronic money on the economy?
In view of the effects of electronic money, the latter can contribute to the high rates of economic crimes such as money laundering, tax evasion and currency counterfeiting. Therefore, controls governing the issuance and circulation of electronic money are necessary to combat such crimes.
Last Update: Oct 2021
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