Online Transaction Empowered by E-Currency Exchange without credit card
The growth of the internet on a public scale, since its arrival in the eighties has allowed businesses to expand internationally. User interactions are no longer restricted to the local level. Easy to use web interfaces allow voice, message and video-based conversations. Entrepreneurship is much easier than before as individuals can place their product catalogues on websites without much set up costs. Country specific currencies (such as the American dollar, Euro, Rupee etc.) tend to cause problems if users need to purchase something unavailable in their location. This led to the concept of 'E-Currency' which is geared towards online transactions as it removes usage limitations based on country or nationality. The popularity of this industry grew as a way of handling the restrictions imposed on global businesses. Privacy is a major concern in this regard since there are multiple web-based transactions involved. Security features for such financial operations have had their shortfalls in the past but managed to become pretty stable. The existence of E-Currencies primarily depends on factors such as the improved privacy features, the need to generalize fund formats throughout the world and the execution time for such transactions ("Understanding the E-Currency," 2002)
Background of study
E-Currency is different from traditional forms of money, approved and issued by the government, such as Yen or Dollar. Their purchasing power and values are maintained and updated by the respective financial departments. One cannot go and ask for E-Currency bills (for example iGold, Liberty Reserve etc.) from banks or public currency conversion centers. They can regarded as specific units which have some value based on real money (in Dollars, Euros etc.). They are like digital widgets (or poker chips which can be used online) applicable in different countries. The development of such means of money which are not under direct government control does bring forth legal concerns. E-Gold is one of leading E-Currency provider which has been in existence since 1996 and has millions of customers worldwide. They have never been had to suffer any legal prosecutions or assigned an illegal status. Neither have they been blamed of breaking international laws by global organizations such as the United Nations ("Understanding the E-Currency," 2002)
A large section of E-Currencies are backed up by metal. The money deposited by customers is converted into metal bullion, which can have its ownership conveyed onto his or her associate. This form of ownership transfer can be repeated multiple times. This can be compared to 'warehouse banks' and started gaining popularity in the eighties as a result of domestic left wing extremists. They needed to conceal their assets as they went forth in abusing the financial system and extort money. While logs of transactions conducted by E-Currency companies can usually be attained by court orders, deals with a turnover of over 10 grand requires appropriate reporting. This was introduced on account of Secret service agents and economists articulating their concerns over chances of illegal money laundering via E-Currency exchanges. The history of E-Currency in the past few decades has demonstrated how easily it can be implemented in pyramid scams. Potential internet thieves insist on having their payments done via E-Currency instead of credit cards or checks. This allows charges to be placed and cleared instantly. As most of these are irreversible, fraudulent activities become easy to commit. It has been estimated that nearly half of the transactions involving E-Currencies are associated with online games or scams.
E-Currency exchange functionalities
E-currency exchange is a tool (usually exempted from government interest but exceptions do subsist) which exists for an international audience. The E-currencies applicable for transactions are listed on the website for users to choose. A payment involves transporting money (in its traditional or electronic form) to the payee account from the payer. The payment method needs to be selected before any money gets sent. The basic functionalities of such exchange websites include buying and selling of E-currency to and from the user. The participating users need to ensure that the funds they use are from trusted sources and do not fall under the jurisdiction of any restrictions (local or international).
Registered users have the authority to move their funds around by varying their transactions. Users create accounts in order to get registered and partake in transactions. The personal information disclosed by them before proceeding with an order is not revealed to external sources. Exceptions do come forth if federal law requires the disclosure of user details to relevant authorities....
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