@----Electronic Currency-----@

Electronic currency (also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency) is a trading method that involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account When people dealing transaction online with other country, it provide this system to automatic translate the rate of foreign rate before making exactly amount.

This system had benefits the online users in assist them but however, the widely use of electronic currency only begin when the automated clearinghouse was set up by the US Federal Reserve in 1972 in order to provide the US Treasury and commercial banks with an electronic alternative to check processing. While at the same time, similar systems also emerged in Europe. Hence, electronic currency has been widely used throughout the world on an institutional level for more than two decades.

Nowadays, nearly all of the deposit currencies in the world's banking systems are handled electronically by a series of interbank computer networks. The Clearing House Interbank Payments System (CHIPS), owned and operated by the New York Clearing House, is the largest financial computer networks in the world.

Even the electronic currency had been introduced long time ago, but it is only effective recently due to the increasing power and decreasing cost of computers. Combine with advancements in communication technology that had made global interaction available at vastly reduced costs. Hence, these factors make the digital transfer of funds a reality for millions of individuals around the world. Besides that, usesage of internet and E-commerce have become an increasingly commercial area, where daily payments are rendered for goods, information and services. As a result, electronic payments are becoming the important role to perform online business between customer and seller.

There is some problem exists when using electronic currency whereby some merchants are not accept the credit card transaction. Additionally, consumers have become concerned with "hackers" who intended to intercepting and obtaining their credit card number stored on the Internet, not only that they affair to become a victim of fraud on the Internet since the customer and the merchant never physically meet. Furthermore, as the data collection industry continues to grow, credit card companies are invading consumer's privacy by collecting their spending habits and reselling the data to third parties and cause unsafe to consumers.

In overall, electronic currency is important system that allows a person to pay for goods or services by transmitting a number from one computer to another. These transactions are carried out electronically whether transferring funds from one party to another, and by either a debit or credit. These funds still can safe and secured by using strong encryption, and thus it will eliminating the payment risk to the consumer. In conclusion, electronic currency is the digital representation of money, or more accurately, the digital representation of currency.

Reference: http://www.murdoch.edu.au/elaw/issues/v6n3/ishman63.html
http://www.investopedia.com/terms/forex/e/electronic-currency-trading.asp
http://www.businesspme.com/uk/articles/trade/90/Electronic-money---advantages-and-disadvantages.html