Advantages and Disadvantages - Electronic Cash

Advantages and Disadvantages - Electronic Cash

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Electronic Cash (E-Cash) or electronic money are playing more significant role in our daily life due to the rise of internet usage. Most of the money form today is in electronic. However with new invention of tool doesn’t mean that it will bring all positive results as nothing is perfect in this world.

Pros
We can transfer funds, purchase stocks, and offer a variety of other services without having to handle physical cash or checks as long as bank is providing such services online. The significant effect is we do not have to queue in lines, thus saving our time.

Debit cards and online bill payments allow immediate transfer of funds from an individual's personal account to a business's account regardless the designated place (around the globe) by few clicks without any actual paper transfer of money. This bring convenience individual like us and businessmen.

Consumers will have greater privacy when shopping on the Internet using electronic money instead of ordinary credit cards.

Cons
E-cash and E-Cash transaction security are the major concern. Frauds on E-Cash are on the catch recent years. Hackers with good skill able to hack into bank accounts and illegally retrieve of banking records has led to a widespread invasion of privacy and has promoted identity theft. There are many other tricks including through phishing website of certain banks and emails.

Money flow and criminal/terrorist activities are harder to be traced by government. With the continued growth of E-Cash, money flow in and out of countries at immediate speed without being traced will weaken the government's ability to monitor and income in tax. Money laundering and tax evasion could be uncontrollable in e-cash systems as criminals use untraceable internet transaction to hide assets offshore.

E-Cash is not for everyone. Low income groups without computer and internet access are unable to enjoy the usage of E-Cash. This issue shall be resolved so that E-Cash could be implemented widely.

There is also a pressing issue regarding the technology involved in electronic cash such power failures, internet connection failure, loss of records and undependable software. These often cause a major setback in promoting the technology.
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