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Did you believe that money makes the world go around? If so, then does the world spin faster when money can circle the globe in a fraction of a second? “Money” itself comes in multiple such as coins, paper, negotiable bonds and now bits of data residing on computer servers or pulses of light flowing through a fiber optic network. Changes in currency are causing ripple effects in everything from crime to the stability of governments. One of the challenges will come from the move to electronic currency. Electronic currency refers to several systems which enable a buyer to pay electronically by transmitting a unique number (digital certificate) similar to a banknote number.

Unlike credit card payments where the identity of the buyer can be established, digital cash acts like real cash is anonymous. This electronic currency also been implemented for lack of controls and security of anonymous payments systems like bank notes and coins. For example, lack of proof of payment, theft of payments media and black payments for bribes, tax evasion and black markets. It is commonly involved in computer networks, internet and the digital stored value systems. Some examples of electronic currency are Electronic Funds Transfer (EFT) and direct deposit.

The difference between electronic currency and other forms of electronic payments is that issuer backs currency. There is no need for a recipient of the funds to trust the person with whom they are transacting as long as they trust the issuer. A transaction with electronic currency places real funds into a seller’s account whereas an electronic payment system places only a promise to pay in that account. This technology provides a technological innovation that may require people to have faith in companies and other private sectors.