Electronic Currency

Electronic currency also can call as e-money, electronic cash, electronic money, digital money, digital cash or digital currency. It refers to money or scrip which is exchanged only electronically and this also involves use of computer networks, the internet and digital stored value systems. The examples of electronic currency are Electronic Funds Transfer (EFT) and direct deposit.

The use of the various types of electronic money has not experienced a considerable popularity but it is being tried out in different parts of the world. The countries are widely using this technique of electronic cash system such as Singapore and Hong Kong. This technique is basically used for debits and credits or for exchanging values either online or offline.

One of the e-currency is Octopus card system was launched in September 1997 to collect fares for the territory's mass transit system. It was the first contactless smart card system in the world and has since grown into a widely used payment system for virtually all public transport in Hong Kong. Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Hong Kong. The Octopus is used for payment at convenience stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines.

Payment processor for e-currency can sell own e-currency directly to the end user like Paypal or other payment processor like e-gold and Liberty Reserve can sell through digital currency exchangers (in this manner you exchange e-currency for real money like EURO, USD dollars). E-gold is an e-currency might be fully backed by gold and Liberty Reserve is an e-currency that non gold backed or both gold and non gold backed.

e-gold
e-gold is a digital currency, issued by e-gold Ltd., a Nevis corporation, 100% backed at all times by gold bullion in allocated storage. Other e-metals are also issued and 100% back by the corresponding metal: e-silver, e-platinum, and e-palladium.
e-gold is integrated into an account based payment system that empowers people to use gold as money.

Liberty Reserve Liberty Reserve is incorporated in Costa Rica. It is a 100% irrevocable payment system allowing you to send or receive money to or from anyone in the world.An offshore Trust protects Liberty Reserve and is always backed 100% by U.S. dollars for LR-USD accounts, and by gold for LR-gold accounts, etc.

The benefits of e-currency:

- Send and receive money instantly to family, friends and business associates over the world;

- The users can make payments 24 hours a day from anywhere you are through payment processor and have possibility to connect to internet

- Take credits in real tame online payments from selling goods and services, online games, auctions, and etc.

- Open free e-currency account signup

- Email payments to any email address; request payments from anyone with an email address;

- Lower merchant fees than credit cards

- Value security systems for PIN verification of spends

Reference:

• 
  
  http://en.wikipedia.org/wiki/Electronic_money
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  http://www.articlesbase.com/international-business-articles/ecurrency-pro-or-contra-732036.html
• http://www.sellingonnet.net/online-means-payment/various-types-electronic-money/
• 
  
  http://www.imoisilis.com/2008/05/what-is-e-currency.html
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  http://en.wikipedia.org/wiki/Octopus_card