What is electronic money in banking?

Electronic money, often referred to as eMoney, is a digital currency stored in banking computer systems. It facilitates electronic transactions and is primarily used for digital rather than physical transactions. How does electronic money differ from traditional currencies?

What is electronic money (eMoney)?

Electronic money or eMoney is currency stored in banking computer systems and backed by fiat currency. Individuals process and receive electronic money through paycheck direct deposits, electronic fund transfers, or online payments and purchases.

How does electronic money differ from traditional currency?

Electronic money differs from traditional currencies as it exists in digital form within banking systems. It is backed by fiat currency and operates globally through electronic banking systems, providing a convenient and efficient alternative to physical cash. What security measures are in place for electronic money transactions?