E-money, also known as electronic money, is an electronic store of financial value. It may be used on any technical device, like a mobile or tablet, for making payment. This device acts like a prepaid bearer instrument. E-money transactions do not involve banks.
Nowadays, people use it instead of hard cash because of safety issues. Such virtual currency reduces the risk of pickpockets and robbers. People may transfer funds into their e-money accounts using some payment cards. You can get to know more about it at the-wealthmatrix.com.
When they shop for something online, the payment is deducted from the e-money account. it has caused a revolution in the world of finances. However, their accounts should not be confused with an e-wallet like Paytm.
Most third-party vendors do not charge any transaction fee for digital currency. People complain that they need to pay more transaction charges for transferring substantial amounts in case of payment through real money. It helps them to transfer high amounts without paying any extra charges. It is a burden off their shoulders.
E-money is an example of advanced technology. It is accepted in different sectors like engineering, e-commerce, and retail. Businesses that accept only cash are facing significant financial losses. Most of the customers want to pay through digital money.
1. Security
Virtual currency is secure in the 21st century. Dishonesty seems to be a growing trend nowadays. People often find their wallets empty, or their houses robbed. Even wallets are not safe. Customer care executives of different banks are tired of receiving calls from customers. These customers are in a panic state because their account has been hacked. So, they have lost all their funds.
Customers also fall prey to fake advertisements and offers, as a result of which they lose money from their wallets. Credit cards also get stolen or misplaced, and customers lose their earnings before they may get their card blocked.On the contrary, the e-money services are encrypted. This end-to-end encryption keeps the money secure. Hence, the customer’s data is secure. There is little chance of the e-money getting stolen, or the e-money account getting hacked. The additional security of mobiles-like fingerprint scanning is an added advantage.
2. More Economical
Shopkeepers who accept e-money admit that they get more customers. The transaction cost of e-money is substantially lower than that involving credit cards. Certain transactions charge a nominal fee, but the amount is nominal.
3. Irreversible transactions
Customers need to double-check the address where they are sending their e-money payments. Once a customer makes a payment through virtual currency successfully, the payment cannot be reversed. If people forget their e-money account password or misplace their private key, their virtual currency is lost forever.
4. E-money has been sent to space
Bitcoin is a form of e-money. A cloud provider known as Genesis Mining had tied a model 3d Bitcoin and a Bitcoin paper wallet to a weather balloon and sent it to space. This organization had used a GoPro to track its progress. The transaction had been successful in space.
5. Details of the sender/receiver are hidden
Most of the e-money accounts provide the user with a portfolio used as a username to protect the sender and the receiver’s identity. So, several illegal transactions take place through e-money.
6. Virtual currency cannot be banned:
No state can declare dealing in or trading with virtual currency to be illegal. Countries like Vietnam, Bangladesh, and Thailand have attempted to ban Bitcoin, but have failed miserably. It needs to be regulated, but cannot be banned. Since they are decentralized by nature, they cannot be physically banned. Google had recently banned advertisements for digital currency. Later, the search engine giant decided to lift the ban. It also brought about a change in digital currency ads. Professionals who deal with e-money are guessing that Google may launch its e-money in the future.
7. Volatile
The largest digital currency is named Bitcoin. Market analysis has revealed that factors like inequality of wealth have made digital currency volatile. Its value is liable to change at a moment’s notice.
8. Digital currency is accountable in taxes
The USA’s government has announced that digital currency is a capital asset. A person may stand accused of tax evasion for not declaring Bitcoin in his taxes.
9. Several attempts have been made to launch P2P digital currency
Hashcash by Adam Back and Bit Gold by Nick Szabo were some early versions of P2P digital currency.
10. Virtual currency releases energy
E-money requires vast amounts of computer processing. So, this sector of e-money needs a lot of energy.
11. First Transaction
The first transaction of virtual currency was made on 22nd May 2010. A customer named Laszlo Hanyecz paid 10,000 BTC to buy two Papa John’s Pizzas.
12. Leading currency
Reports claim that the US dollar and Japanese Yen are the two most essential currencies to be exchanged for Bitcoin.
13. Ownership
Very few people claim to be owners of any digital currency. Satoshi Nakamoto, the founder of Bitcoins, never claimed to own the code for it. However, it is easy for anyone to create a digital currency.
14. The highest number of searches
People had shown maximum interest in digital currency in December 2017. They had searched their queries in Google, the maximum number of times that month.
15. E-MONEY wallet may be traced
If people have the wallet address, name, and transaction id of another person, they may track the blockchain. This information helps people track the w-money wallet and recent transactions of others. The money cannot be reversed but who sent e-money to whom it is easy to find out.
16. Instant transaction
People often need to receive cash from some other person. However, e-money may be transferred instantly.
Conclusion
Digital currency is gradually taking over monetary transactions. People complain that the process of carrying a credit card is cumbersome. Also, the monetary transaction is a complicated process.
On the other hand, the process of transferring digital currency is simple and straightforward. The low transaction fee makes it easy to transfer digital currency from one country to another. Many people have relatives who stay in other countries. The reduced transaction fee encourages people to do international transactions.
