Systems of E-cash
Technically electronic or digital money is a representation, or a system of debits and credits, used to exchange value, within another system, or itself as a stand alone system, online or offline. Also sometimes the term electronic money is used to refer to the provider itself.
A private currency may use gold to provide extra security, such as digital gold currency. Also, some private organizations, such as the US military use private currencies such as Eagle Cash.
Many systems will sell their electronic currency directly to the end user, such as Paypal and WebMoney, but other systems, such as Liberty Reserve, sell only through third party digital currency exchangers. In the case of Octopus Card in Hong Kong, deposits work similarly to banks’. After Octopus Card Limited receives money for deposit from users, the money is deposited into banks, which is similar to debit-card-issuing banks redepositing money at central banks.
Some community currencies, like some LETS systems, work with electronic transactions. Cyclos Software allows creation of electronic community currencies.
Ripple monetary system is a project to develop a distributed system of electronic money independent of local currency.
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