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Could it be that
currency, as we know it, is on the verge of extinction? A handful of
pioneers currently developing electronic currency technology would say
yes. Others are not so sure. Some seldom-publicized forms of
electronic payment have been around for a long time. The Federal
Reserve and financial institutions around the world have been
transferring trillions of dollars daily via electronic means for years.
Meanwhile, in parts of Europe and Asia, electronic cash has gained
widespread acceptance. Public telephones in France, for instance, have
been smart card-based for over a decade. But since the cardholder must
pay an equivalent value in cash to purchase the cards, such cards
really represent only part of the story.
Electronic cash purists
believe that its full-fledged development and application will
occur in cyberspace, through its downloading from an existing online
bank account into an account on your PC. You can then shop the Internet
for the latest bargains in books, music, clothes or anything
offered online.
Once you find what you're looking for, hit a few keys
and your purchase is complete. Or, perhaps you need to load up your
smart card in order to do some shopping in the physical world.
To do this, swipe your card on your PC, load up on the electronic currency
residing in your virtual bank account and you're off to the mall-just
for a reminder of shopping in the good ol' days.
If you're planning
on a trip on the information highway with your PC wallet in hand,
however, be prepared for a somewhat bumpy ride, at least for now. For
starters, you will need the right software to conduct online cash
transactions.
If you're planning
on a trip on the information highway with your PC wallet in hand,
however, be prepared for a somewhat bumpy ride, at least for now. For
starters, you will need the right software to conduct online cash
transactions.
Moreover, you must find a merchant who will accept them.
You must also be confident that your system is relatively safe from
high-tech thieves and computer hackers. Despite the current
limitations, developers of electronic cash technologies envision a huge
market for their services. The proliferation of PCs and the access of
PC users-consumers and businesses alike-to the Internet is one
factor. Another is that more than 80 percent of all retail purchases
in the United States are settled in cash, the vast majority of them
for less than $20. Thus, the stakes in bringing viable electronic cash
technology online are high.
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