This is an anonymous form of money that is digital that can be linked directly to a bank account or exchanged for physical money. As with physical cash there is no way to obtain information about the buyer from it, and it can be transferred by the seller to pay for subsequent purchases. It involves use of computer networks, internet and digital stored value systems. It is also referred to as e-cash. Digital cash technology is viewed as a key payment mechanism for future, whether for use in conventional retail setting or to engage in electronic commerce over the internet. It is one of the wonders of our age where advancement in technology is easing our normal operations to unheard of lengths.
The main advantage of digital cash technology against the conventional or traditional electronic fund transfer mechanisms such as credit card based transactions lies mostly in its potential for providing cheap processing per transaction, costs. Another feature that is seen as being appealing to the consumer is the security and privacy that derives from the fact that personal information does not need to be communicated for such payments to be made. Data security is the central element in achievement of data cash minimizing the liability risks for using digital cash as a payment service. Data security is seen traditionally as purely a technical process. People using data protect their information assets through a range of physical, logical and operational measures designed to insulate their systems against threats arising from intentional interference by people or from natural and accidental events. However, users should also be aware of the complementary legal aspects of data security.
As would be currency providers should know, there are key elements to successful digital cash. The security and use of the digital cash is not dependent on any physical location. The cash can be transferred through computer networks and off the computer network into other storage devices. The digital cash should be simple to use from both the spending perspective and the receiving perspective. Simplicity leads to mass use and mass use leads to wide acceptability. It is well known and accepted in large accepted zone; it implies the recognition of trust in the user, digital cash provider displaying wide acceptability. It maintains value unless destroyed or lost the user has got out for business. It can also be transferred to other users. The digital transaction must ensure that a high level security is maintained through sophisticated encryption technique.Digital cash in a given amount can be subdivided into smaller pieces of in smaller amounts. The cash must be tangible so that reasonable portions of change can be made.
Digital cash technology impose risks on both the online merchants and consumers including questions about security, the ability to safeguard users’ privacy and effectiveness as a means of online fraud. All these generate loss against e-commerce merchants over increased legal liability. Digital online purchases more convenient for users and possess risks for them as well. Also operational disruption can generate serious hazards for e-cash operations.