Quatre E-Commerce World

Money used in physical marketplace is in physical substance, such as coins, bank notes, cheques and other trading form of currencies; however, electronic currency is also a newly introduced form of payment method.

Electronic Currency

Electronic Currency, also known as several names such as e-money, electronic cash, digital money, digital cash and many other names, are money that is exchanged electronically only. It is a complete computerized monetary system that is proposing to replace the present paper currency system. It is believed that the initial plan of the launching of the system is to use as a substitute for credit or debit card system.

Usage of Electronic Currency

Example of electronic currency system could be seen in many developing countries.

For example would be the most successful Octopus Card in Hong Kong. It could be used in transits payment and also convenience shops. The store value card has grown into a widely used electronic cash system.

Another example would be from our neighbor country, Singapore. EZ-Link card is the contactless stored value card in the country which currently used by public transport commuters in the country. Recently, bank had upgrades their ATM machines to allow store valued card top up procedure to be done more conveniently.

While in Malaysia, Touch ‘n’ Go is a very good example of electronic currency. It could be used for some public transport, convenience shops like the 7-11. Some parking facilities used this system to eased users parking payment method too.

Impact

Economic impact when Electronic Currency system is exclusively implemented as a replacement to paper currency system would be noticeable. Some of it would be, saving cost in most of the procedure of producing paper currency. Printing and minting costs of paper currency would be saved. Moreover, it will be eco-friendly too as less papers are used for printing of paper currency. Thus, it helps saving high quality of wood and vast jungle areas.

Real wealth could be created as standard of living of the people will be increased. Transactions could also be done at any decimals of currency and the processing period would be faster and effectively done. But, of course, banks would have to play an important role in this system implementation if electronic currency is to replace paper currency.

However, in my opinion, although this system is an effective control over cyber crimes, theft relating to money transfer systems, stricter security and pre-cautions method would have to be implemented together with this system. This is a result of human knowledge changed as things around them evolved. Thieves will maybe think of another way to succeed in their fraud and theft activity.