Digital cash or electronic cash is money in electronic form. In the absence of actual currency, transactions are recorded electronically.
The development of digital cash transfer systems is important for the quick transfer of funds. This is also used in making direct deposits.
Electronic payment systems have also made it easier for merchants to sell their items, as well as for buyers to purchase these. For instance, a merchant who does not wish to shoulder additional operating expenses may advertise his goods on the Internet and make it possible for his buyers to pay, using an electronic payment system such as Paypal. This also gives him the additional benefit of reaching out to a larger market than would be possible by putting up a physical store.
Digital cash presents some issues, too. For instance, it is possible for a situation in which the amount electronic money available is greater than that of actual money. Also, transacting with digital cash may make it easier for money laundering and other forms of crime to take place. If a hacker succeeds in tampering with a database, for instance, it are possible for unauthorized funds transfers to take place.
Digital cash is also known as electronic money, e-money, or e-currency.
