Electronic Currency

What Does Electronic Currency Mean? E-currency System is a complete computerized monetary System, proposing to replace the present paper currency system. Initially it is planned to launch e- currency system as an alternative to credit or debit card system. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money.

Public-key cryptography and digital signatures (both blind and non-blind signatures) make electronic currency possible. It would take too long to go into detail how public-key cryptography and digital signatures work. But the basic gist is that banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. A private key known only to the owner, and a public key, made available to everyone.

Besides, Electronic currency trading is a method of trading currencies involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account. And Electronic currency traders use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because currency trading by this method is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profits at a moment's notice.

Technically electronic or digital money is a representation, or a system of debits and credits, used to exchange value, within another system, or itself as a standalone system, online or offline. Also sometimes the term electronic money is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. Many systems will sell their electronic currency directly to the end user, such as Paypal and WebMoney, but other systems, such as e-gold, sell only through third party digital currency exchangers.

Theoretical developments in the area of decentralized money are underway that may rival traditional, centralized money. Systems of accounting such as Altruistic Economics are emerging that are entirely electronic, and can be more efficient and more realistic because they do not assume a zero-sum transaction model.

References:
1. http://projects.exeter.ac.uk/RDavies/arian/emoney.html
2.http://www.learncurrencytradingonline.com/electronic-currency-trading.html