What Are Electronic Currencies?

What Are Electronic Currencies?

Electronic currencies refer to the money deposited in a banking account in either local or foreign currencies. Once the money is deposited, it becomes an electronic currency, and can be exchanged through electronic debit or credit systems.

In addition, the money is traded through cards that act as code key on which the money is placed in the name of its owner.

Fully centralized

Although the owner of these currencies can buy, sell and transfer them, he does not fully own such currencies. In addition, these transactions are completely controlled by a traditional bank.

In case of a malfunction with the electronic card, the bank will be the only entity that has the information required to fix such malfunction, and not the owner.

Likewise, when there is doubt about the owner of this card, or if the authority wants to prevent its owner from dealing in his money, the bank can then prevent him without even withdrawing this card.

Usages

With electronic currencies, people can make several financial transactions through inserting the e-card, and transferring money from one account to another, without the need to withdraw and hand over the cash.

The electronic currencies can be used in several purposes such as charging phone, paying electricity, water, and landline bills, as well as dealing with traditional or electronic stores and markets.

In addition, you can use the electronic currencies in booking airline tickets, buying software, games and entertainment apps.

Of course, this is the difference between electronic and digital currencies, whether crypto or non-crypto, especially as the latter is a currency in itself, but what we are talking about the normal currencies.

To get more details about the different types of currencies, please visit these links: Digital Currencies and Cryptocurrencies.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.