Electronic cash, or e-cash, is a digital financial instrument used for paperless transactions, commonly used for distant transactions and international business. It can be exchanged between individuals and easily converted to paper money. It eliminates the need to carry physical currency and makes international business and travel easier.
Electronic cash is one of the instruments that can be used to conduct paperless transactions. Paperless transaction is a term used to describe financial exchanges that do not involve the physical exchange of currency. Instead, the monetary value is credited and charged electronically. Often called e-cash or digital money, this financial instrument is commonly used to conduct distant transactions, such as those between parties on the Internet and those between parties in different countries.
Electronic cash can be a financial instrument created and used within a private system, just like frequent flyer miles. However, in most cases, electronic money is equivalent to paper money and can therefore be exchanged between individuals or spent for any type of goods or services that a person wishes to purchase. This financial instrument has played an important role in the growing popularity of telecommuting, which is an arrangement that allows people to work together in distant locations.
The digital currency may allow a freelancer in India to be paid for work they did for a contractor in Canada. This is possible due to a currency exchange system whose principle is similar to that of money wiring. When a person uses a wire service, they usually present money or have money withdrawn from an account.
The value of that money is credited to someone else elsewhere. Paper money presented by the sender or taken from their account is not physically sent or delivered to the receiver. Electronic cash is exchanged in a similar way. However, one major difference is that transactions can often be done without a live broker.
People involved in electronic cash transfers can never acquire paper money. They can receive their funds electronically and they can use them electronically. However, this does not mean that it is impossible to obtain paper money from electronic cash.
In many cases, electronic money can be converted into paper money quite easily. This is possible because electronic money is commonly held in an account that can be accessed in a variety of ways. For example, many have debit cards that can be used at an ATM. At times, a person may request that all or a portion of the money held electronically be made available by check.
There are a number of advantages of electronic cash. One is that it eliminates the apprehension that many people feel when carrying and exchanging paper money. Another advantage of electronic cash is that it is often easily converted to another currency, making international business and travel much easier.
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