Electronic money essay

In 1983, a research paper by David Chaum introduced the idea of digital cash [ 4 ]. Every day we face the retail money problem. 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.

Generally, you conduct e-money or e-currency transactions over the Internet, or with smart cards that are linked to a bank account. More and more people are also using mobile phones to make such transactions. With e-money, there is anonymity. It is not the same case with liquid cash or credit and debit cards.

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.

Electronic Money (E-Money) may be broadly defined as an electronic store of monetary value on a technical device that may be likely used for making payments to undertakings other than the issues without necessarily involving bank accounts in the transaction, but acting as a prepaid bearer instrument (European Central Bank, 1998).