It seems that every year payment systems one by one try to make new surprises for us. This time the surprise became from popular and known E-bullion payment system which always was considered as closed type payment system which doesn’t put into the own practice any alien business methods and stereotypes. There was set a rumor that E-bullion system is going to follow the well-known E-gold payment processor because these two systems have the same work principles and they are based on one technology. The social majority can think about this situation, “Hm... it is really strange. Why successful and developing company aim to go out from success way?” Unfortunately the recent events explain a lot of these questions and confirm the rumors. On Monday, 28 July 2008, at 6:30 PM there was found stubbed Pamela Fayed, one of co-founders E-bullion. Woman died because of numerous stabs. This news shocked social community and especially the way of murder. There are a lot different hypothesizes about...
If we speak about Electronic Money the main word here is the Money. It means that this innovation, first of all, deals with finance and economy and secondly – it is of legal nature.
You cannot take this money into your hands, count with your fingers or sense its. However, it is real. Electronic money functions also prove its full value. It is the measure of value, payment means, means of circulation and (to a lower extent) means of hoarding. It meets all requirements stipulated for the world finance. That is why, electronic money are used as international payment unit.
Electronic money stored electronically has, on one hand, the properties of traditional cash money, on the other – the properties of bank payment instruments. So its holder can make financial settlements as in cash circulation (bank system is not involved), or he/she can make non cash payments using accounts opened in credit organizations. This is the commodity and credit nature of electronic money.
Legislation and civil law of some countries have not yet establish some rules regulating the emission. Thereby, virtual money is still considered electronic monetary obligation of the issuer. The issuer is, mainly, the banks. As banks are not very trusted sometimes so the electronic money use is thus far limited. Government, for its part, issues cash and is very trusted by population and businessmen.
First of all, this money (information) shall be stored electronically. Secondly, it is emitted once money is withdrawn from the account. Thirdly, electronic money is of real-value to its issuer as well as other entities using different payment means. These three aspects most fully explain the economic and legal components of electronic money.
But it is not so relevant compared with the risk of cash stealing and inflation; and that is why the number of electronic money is increasing.
You cannot take this money into your hands, count with your fingers or sense its. However, it is real. Electronic money functions also prove its full value. It is the measure of value, payment means, means of circulation and (to a lower extent) means of hoarding. It meets all requirements stipulated for the world finance. That is why, electronic money are used as international payment unit.
Economic Nature of Electronic Money
Virtual money is information stored electronically. Electronic account’s holder is an owner of a payment instrument providing a number of opportunities.Electronic money stored electronically has, on one hand, the properties of traditional cash money, on the other – the properties of bank payment instruments. So its holder can make financial settlements as in cash circulation (bank system is not involved), or he/she can make non cash payments using accounts opened in credit organizations. This is the commodity and credit nature of electronic money.
Legal Nature of Electronic Money
The basic feature of electronic money from legal point of view is its emission. The number of electronic money shall be guaranteed with cash.Legislation and civil law of some countries have not yet establish some rules regulating the emission. Thereby, virtual money is still considered electronic monetary obligation of the issuer. The issuer is, mainly, the banks. As banks are not very trusted sometimes so the electronic money use is thus far limited. Government, for its part, issues cash and is very trusted by population and businessmen.
Electronic Money Definition
There is no some generally recognized definition yet. The nature and the potential of electronic money compared with the traditional are still disputed. However, based on the described functions, properties and capabilities we can name three aspects to be included into the definition.First of all, this money (information) shall be stored electronically. Secondly, it is emitted once money is withdrawn from the account. Thirdly, electronic money is of real-value to its issuer as well as other entities using different payment means. These three aspects most fully explain the economic and legal components of electronic money.
Electronic Money Future
Considering all advantages and disadvantages of electronic money one can imagine its further development and role in financial market. Compared to cash, electronic money:- have lesser transaction cost. When transferring money from one purse to another the charge is of about 1% and the transaction cost does not depend on the amount;
- Mostly its use is anonymous. Unlike bank accounts, electronic money transactions do not involve any personal contacts with banks and do not involve any filling of documents;
- Has lower requirements to safety;
- Provides its holder with a possibility to make on-line payments.
But it is not so relevant compared with the risk of cash stealing and inflation; and that is why the number of electronic money is increasing.
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