Electronic money (e-money) offers convenience and flexibility through its ability to transmit funds electronically from sender to receiver and vice versa. When compared to paper money, e-cash eliminates the possibility of counterfeiting and other frauds since it is traceable back to the source at every stage. While cash allows transactions to take place offline, e-cash enables them via the Internet. This makes e-cash more secure and convenient compared to cash. Let’s see below the importance of electrical money.
It gives a new perspective on money as a medium of exchange
If one considers that gold coins are only useful to store wealth by playing online pokies Australia games, then electronic money can be used for any purpose or in any form. The only requirement is that you should have an account balance for it to work. In contrast to paper money, which must be printed with some sort of legal tender, electronic money can be created by anyone who has access to a computer and printer. Moreover, it can also be stored on any portable storage device such as USB flash drives, CDs, DVDs etc. Since electronic money is just digits, it does not require physical handling; hence, it can easily be transported across borders without restrictions.
It provides a means of payment over long distances
With the advent of online shopping websites like Amazon, crazyvegas casino online and eBay; online purchases where both buyer and seller are connected through the internet becomes easier than ever before. Imagine if a person wants to buy something online but he lives far away from the shop that sells that item. There is no need for him to go physically there and purchase his desired item; instead, he can purchase it through the internet and pay his bill later using his credit card.
It helps reduce transaction time
The time taken to transfer money depends on how many steps are involved in the process. For example, suppose we want to send $100 to someone living in another country and the amount needs to be transferred in Dollars, Euros, Pounds and Swiss Francs. If we do not have a foreign currency account set up, the entire process will take several days to complete.
In conclusion, despite all the benefits offered by e-money, it still faces challenges that prevent it from becoming widespread. One major problem that prevents people from adopting this technology is the cost associated with setting up a bank account.