The Replacement
Posted on April 3, 2008
Digital cash has brought clear advantages over traditional money which makes many wonder if it is about to replace real money soon. Electronic money is precise, simple and convenient for its users. Banks foresee the elimination of thousands of paper transactions and the corresponding reduction in user fees. Many corporations are eyeing the possibility of entirely circumventing banks by creating direct company to company transfers.
A lot of companies are rushing to develop new technologies that will create secure and efficient transactions over the Internet in an effort to bring more consumers into it. This is because digital cash, in spite of its convenience, brings with it its own set of complex problems. The anonymity afforded by the use of digital money has presented an opportunity for tax evaders and money launderers. Hackers could also break into digital cash systems and download the wealth of thousands of unsuspecting customers. The use of digital cash will still rapidly increase but may not be ready to totally replace real cash soon enough.
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