Electronic currency

Electronic currency also knows as e-money, electronic cash, digital money or digital currency. Electronic currency is essentially a system that allows a person to pay for goods or services by transmitting a number from one computer to another. . Thus, electronic currency is the digital representation of money, or more accurately, the digital representation of currency. Electronic currency also includes internet-based purchase and sales transactions involving almost anything to be safely conducted at lightning speed.

A private currency may use gold to provide extra security, such as digital gold currency. Individual open an account to deposits money with an online electronic currency company that then converts the amount into gold bullion. The account holder can transfer ownership of some or all of that gold into someone else's electronic currency account. Electronic currency has been widely used by perpetrators of pyramid scams. Experts estimate that about half of e-currency transactions are related to scams or online games.

An electronic currency system may be fully backed by gold (like e-gold), non-gold backed, or both gold and non-gold backed. Two major types of electronic currency their backed base. One is backed by precious metal such as e-gold is backed by gold .Another type of electronic currency is backed by hard currency like Pay Pal. Both of them are all called electronic currencies.

Nowadays, nearly all of the deposit currencies in the world's banking systems are handled electronically through a series of inter-bank computer networks. Although banks have been able to move currency electronically for decades, only recently has the average consumer had the capability to use electronic transfers in any meaningful way.