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The movement of money electronically from one point to another can only be called electronic money if it exudes certain traits or characteristics. And the number of qualities or should I say the properties it exhibits determines the grade and ranking of that transaction.
Hence, the listing of the most desirable properties of electronic money systems.
Security
Because the currency by which electronic money is being transported consists of bits that can digitally be copied and reused easily, protocols and systems that allows for the execution, authenticity and reuse of these currencies are mandatory.
Privacy
This is a very crucial part of any electronic money transaction. In fact, it is one of the major attractions of EMT, and thus the anonymity of a buyer within any given transaction should be guaranteed.
That is when a buyer makes use of electronic coins, the buyer’s identity should not be identifiable or traceable through their payments. However, if some kind of fraud is attempted, the financial institutions like banks are able to identify the buyer, for them to be able to carry out proper legal actions.
Independence
Considering the fact that electronic money must be sent via a network, It’s security cannot afford to be dependent on the security of the network.
Online payment
Payments or transactions should be done online, and whenever there is a transaction between a buyer and a merchant, the merchant should be connected to the financial institution so as to validate the transactions.
Transferability
The money can and should be transferable to other users who may intend to make use of those electronic coins later for another transaction without any problems.
For more details check the below infographic according to MyPaymentSavvy.
