E-commerce Change the World

Hi, my dearest readers. Today I’m going to share some information regarding the electronic currency with you guys. Yet, before I provide the detail information about it, let me take this opportunity to share some basic knowledge first. As we know, the improvement of technology and internet has driven the use of electronic currency in the world. Besides, it also plays a major role in most of the transactions which perform or done through the internet. Thus, it is important to know about what is electronic currency as well as their pros and cons.

Now, let me ask you a question. What is the electronic currency? Isn’t something like traditional money that can be seen and touch? The answer definitely is NOT! In fact, electronic currency is an intangible money that cannot touch and it is money or scrip that just can be exchanged electronically.Thus, it is safe for us to use the electronic currency, we do not need to worry that the money will be lost. E-money, electronic cash, electronic currency, digital money, digital cash or digital currency is another term of electronic currency.

Electronic currency to be used for payment over the internet is stored electronically on receipt of funds. Moreover, it can be held on devices, cards or on a server, for examples pre-paid cards, electronic purses and etc. In order to exchange electronic currency over the internet, three systems should be involved which are computer networks, internet and digital store value system.

The examples of electronic currency are Electronic Funds Transfer (EFT) and direct deposit. EFT is used to perform financial transaction electronically by using computer-based systems while direct deposit is used to transfer money by using certain system.




There are many companies that provide electronic currency in the world. One of the companies using this currency is PayPal. PayPal is an e-commerce business which allows payments and money transfers to be made through internet. Besides, a PayPal account can be deposited from bank account through electronic debit or by credit card.

Click and buy is also another company that provides electronic currency. It allows customers made payment through the internet without ever providing their personal bank or card details again. This system is currently used by Skype, Msn, T-online, Playboy, Electronic Arts and etc.


However, there are pros and cons using this electronic currency. One of the major benefits is security, by using electronic currency you do not need to worry about the exposure of your private information to stranger. You can made payment through internet without giving any private information.

Second benefit is lower cost transaction. Unlike other business which may eat up an unreasonably fees from your profit, electronic currency trading allows you to earn more from your business which require minimal fees only. Another benefit is globalization, which allows you to assess into global market with no restriction and control from local currency.

One of the limitations is failure of technology. Breakdown of network, defected by worm or virus and etc will cause the data and record to be disclosed to outsiders which may become the barrier of using electronic currency. On the other hand, additional hardware is required by the company in order to perform this electronic currency software and the installation cost is quite costly. Thus, cost of implementation can be considered as a big issue for the company.

If you want to know more about the electronic currency, please do not hesitate to visit the following links which might be useful for you.

i) Electronic Currency
ii) Electronic Currency Trading
iii)Benefits of Electronic Currency Trading

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Labels: Hui Chew, week 5