Electronic payments have become increasingly accepted over the past few years. Credit and debit cards are now the norm while cash is gradually becoming obsolete. Nonetheless, several individuals still prefer to go with cash payments because of some of the advantages it has.to date, people have been finding it hard to choose between digital 꽁머니 money and cash payments.
However, with the new idea of cyber currencies, you can take advantage of using both payment methods. Peruse through to learn what cyber money is and what its pros and cons are.
What is Cyber Money?
Cyber money or digital currency can be described as any electronic system that can store, transfer, and spend electronic money. The systems mostly belong to private companies. In other terms, you can use physical money to buy cyber credits which can then be kept in a digital wallet and use when needed.
Cyber money is not the same as mobile wallets since the latter can only be used if the other party uses a similar wallet. Cyber꽁머니is supposed to be used just like real money and the counterparts are not required to have any systems installed to take cyber money. No special software or hardware needs to be installed for cyber money to be used.
How Cyber Money Works
For one to use cybercash, you need to have a bank account. You need to request the bank to give you electronic cash instead of your money. For example, the bank can deduct $1000 from your account and give you 1000 electronic coins of $1 each.
Each coin issued by the bank is uniquely marked. This is to make sure that every coin is used only once by one user. When used, it gets to a different user with a different number. Such digital marking makes cyber money systems reliable as lack of such marking would cause duplication that corrupts the system.
To make sure that the cyber money system works effortlessly, banks have generated certain protocols like; account opening where the bank takes money and gives marked electronic coins, withdrawal where the bank extinguishes the electronic coins and gives you cash, and payments that extinguish the electronic coins and a customer gets the value of the coins.
- Lower costs: it is very cheap to use digital money. A lot of expensive infrastructures are needed to carry out normal bank business. Tellers, bank branches, and electronic systems to name but a few of what is needed. On the contrary, cyber money requires no special infrastructure. Basic services like the internet are enough to do transactions thereby reducing the operational cost.
- Global transactions; it can be very costly to send physical money to various parts of the world. Also, using electronic money can be as costly when you have to pay intermediaries. Cyber money on the other hand is not expensive to use. Sending money to a next-door neighbor and an overseas person applies the same charges.