electronic+cash

= = ELECTRONIC CASH


 * //WHAT IS ELECTRONIC CASH://**

Electronic cash, called e-cash in short, is a new and efficient way to pay for your own purchases. Other than using paper money and cheques, or plastic money such as credit cards; electronic cash today allows consumers to purchase goods by sending they payment from one computer to another, or one network to another. All you need is just a number, which represents how much the items you buy cost.

In short, Electronic cash is cash transferred ELECTRONICALLY. Such as system is called "Electronic funds transfer (EFT)" basically, it is a system where funds are transferred through electronical means. This system applies to credit cards as well.. However, the way credit cards work and the way electronic cash works is different (See Advatanges of Electronic cash).

__Example of an Electronic Cash Register__


 * //HOW ELECTRONIC CASH WORKS//**

Electronic cash is a system in which the user opens an account with a bank, and transfers his or her money in and out of that bank through the internet. To ensure security, there must be some form of identification required between the user and the bank. In the technical sense, electronic cash is based on a encryption system, where all information (money) sent from the main server to the user, or visa versa, is encoded in "numerical key". These numerical keys is the foundation upon which electronic cash works. The encoding keys are kept hiden from all users, and the users are only given a public decoding key that is available to everyone. By doing this, the electronic cash system places barriers between the user and the bank, and garauntees a user's privacy and safety.

__ Diagram of the process undertaken using Electronic Cash__


 * //USE OF ELECTRONIC CASH//**

Electronic cash functions in a relatively different way from other payment systems. Some people regard it as a combination of paper money and credit cards. However, since it is still new to the public and requires alot of commitment and participation to make it work, it has not been widely accepted by most countries. Therefore, untill now, electronic cash has remained on a pretty low profile, mainly due to the fact that most of the countries citizens are already very comfortable and dependent on paper money and credit cards to want to change their means of payment. Moreoever, the banks are also unwilling to change or create an electronic cash system when they are already functioning well with their existing system. Finally, there is the issue of finance. Electronic cash systems also rely on cards that are inserted into machines connected to the main server (i.e. the bank) via the internet. These machines will definately cost a large sum of money, and there is no garuantee that it will be successful.

The only exception to this are the countries Hong Kong, Singapore and the Netherlands. Hong Kong's "Octopus card" system is an electronic cash system that has grown very popular among hong kong citizens because of its effciency and high level of security compared to the use of credit cards and paper money. It is used as a payment system for all common transportation in Hong kong, such as buses and trains. Likewise, Singapore has also applied the same system. It is called "FeliCa" and is very similar to Hong Kong's "Octopus Card" system, This involves the use of cards and machines that connect the cards to the main server (i.e. bank) via the internet. These machines can be located in every metro station, and is extremely easy to use. Lastly, the success of this system is most evident in the country Netherlands, whose electronic cash system, called the ChipKnip, has already developed past transportation use and now applies to several shops and restaurants.

__Example of an Electronic Cash card__


 * //ADVANTAGES AND DISADVANTAGES//**

There are many advantages that make Electronic Cash systems very effective and different from other forms of payment, like paper money and credit cards. The establishment of Electronic Cash is aimed at becoming that next most common way of transfering money in the future.

Advantages of Electronic Cash:
 * Transfers of Electronic Cash is kept private. Unlike Credit cards, where the serial number of the credit card is recorded and can easily be stolen, there are not traces of the transfers taken when using Electronic Cash. It is anomynous.
 * With Electronic cash, there is a possibility of transfering payments between sender and receiver without the need for a central control system or server. This will help to reduce the cost of transactions and allow it to proceed alot faster.
 * Electronic Cash registers, where transfers are kept and recorded, is alot easier to use compared to other softwares. It is capable of processing all the ongoing sales transactions and therefore is also alot more efficient.
 * Electronic cash cards does not require a personal identification number, signatures, or any proof of the user's identity during transfers.
 * Electronic cash cards is not linked to the user's bank account, which ensures privacy.
 * Electronic cash does not include interest in the investments you make, like credit cards do. Therefore, when you use electronic cash, you are paying an exact price, nothing more.
 * Electronic cash cards work faster than credit cards, debit cards and even paper money. It is the ideal way to spend money.

Disadvantages of Electronic Cash:
 * It is possible to create fake electronic cash because of how simple electronic cash works. There is hardly any identification neccesary in electronic cash.
 * Since Electronic cash is untraceable/anomynous, this leads to the issue of money laundering, where money is transferred illegal source to legal sources.
 * Taxation will be hard to determine with Electronic cash, since people will not know who exactly to tax when they transfer money.
 * Danger of losing the Electronic cash cards. Just like Credit Cards, Electronic Cash cards are small and can be misplaced easily. This can cause serious problems if it is left in unsafe hands.
 * The securty surrounding Electronic cash systems, invovling numeric keys, can be forged, hacked into and attacked.

__Example of Electronic Cash Machines__ - Singapore

It is reliable because of its fast access and simplicity. It is less of a hassle to use compared to credit cards, and some may even agree that it is easier than paper money because the exact price is always paid when using electronic cash, and no change is needed. Integrity can be assured through the use of public and private encryption keys. However, there are still issues of money laundering and fraud, that, although hard to achieve, can be done. Electronic cash assure high security through encryption keys and layers of protections in the central system. However, security can always be breached no matter what. The administrators may take advantage of their authority and invade the security measures put on Electronic cash systems for their own benefits. Electronic cash systems is perfect for ensuring privacy and anonymity. Without the need for any form of identification, like a serial code number or name or password, electronic cash is the perfect way to pay dicreetly and avoid problemes. However, this allows for issues like money laundering and fraud (fake electronic cash cards) to occur more easily. Electronic cash cards are cheap to buy and therefore a very good bargain. However, fake ones can be made, which is a problem in the countries that uses electronic cash systems, since its authencitiy cannot be differientiated. Everyone has access to electronic cash cards. It is easy and cheap to use. Even babies can use electronic cash, under adult supervision of course. Since the identity of the electronic cash card is kept hidden/not required, everyone who uses electronic cash is treated equally. Electronic cash has an excellent control system, in the sense that it offers alot of oppurtunities
 * //SOCIAL AND ETHICAL ISSUES RELATING TO ELECTRONIC CASH//**
 * Reliability:
 * Integrity:
 * Security:
 * Privacy and Anonymity:
 * Authenticity:
 * Equality of Access:
 * Control:
 * Globalization and Cultural diverisity:
 * Policies and standards:
 * People and Machines: