What is digital cash? Depict the procedure of paying for an item with digital cash.

Subject E-Commerce
NU Year Set: 3.(c) Marks: 6 Year: 2017

Digital cash is a system of purchasing cash credits in relatively small amounts, storing the credits in your computer, and then spending them when making electronic purchases over the Internet. Theoretically, digital cash could be spent in very small increments, such as tenths of a cent (U.S.) or less
The future vision is that Digital Cash be a true Internet e-commerce structure with virtual banks created solely for the purpose of transactions clearing.  The unit of money envisioned would not be limited to a cash equivalent of a unit of money from a specific country, but instead would be some Electronic Digital Equivalent Unit (EDEU).  At the time the initial notes would be issued from the enabling bank the EDEU, would be set.  Thereafter all transactions would be in the EDEU
 
There is some resistance to this from governments.   In this system, an entity other than a governmental unit would in effect be issuing money.  Governments are concerned about its possible effects on the stability of financial markets, its effects on monetary policy, its effects on consumer protections (such as our FDIC, and FSLIC programs), and possible criminal activity effects.
 
Most experts believe that the use of the internet for electronic transactions and the use of digital cash will rapidly over the next ten to twenty years, but that a fully integrated international unit of currency approach will not happen any time soon.  In the near future it seems that financial transactions will continue in the same financial market clearinghouse that is in use for current e-commerce systems.


Digital cash is a system of purchasing cash credits in relatively small amounts, storing the credits in your computer, and then spending them when making electronic purchases over the Internet. Theoretically, digital cash could be spent in very small increments, such as tenths of a cent (U.S.) or less.

Procedure of paying for an item with digital cash


1. Provide a Number of Payment Methods

2. Allow Payments without Requiring an Account

3. Deliver a Seamless Design

4. Don’t Redirect People

5. Make Errors Easy to Fix

6. Make Errors Easy to Fix

7. Make Errors Easy to Fix

8. Keep Distractions to a Minimum


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