e-money
E-money, e-money, is electronic money, also called cybermoney or cryptocurrency. It is a full replacement for coins and banknotes and is stored electronically. Under current legislation in Europe, e-money can only be issued by a banking institution or savings bank and can be used as a means of payment in the same way as cash.
New legislative initiatives by the EU Commission are intended to relax the restrictive stance with regard to issuers and allow further providers to issue electronic money. This relaxation is intended to open up the European single market for e-money. After that, the value of e-money is to be defined, its storage and the executions for payment transactions are to be specified.
As a means of payment, e-money can be stored on cash cards, in electronic purses( e-purse) or as network money in servers. Depending on how and where the e-money is stored, the payment transfer can be made from the cash or chip card, transferred from the cell phone or via the Internet.
Through cryptology and certification, this Internet currency, such as Bitcoin, is intended to enable the payment of micropayments or macropayments, i.e. small cents and larger amounts of money. For this purpose, an amount is converted into e-money by the user's bank and transferred to an electronic account through which the user can pay for services.
The advantage is that the user remains anonymous and does not disclose any information about his bank account or credit card. In addition, the bank cannot track the payment process. It cannot determine who, what, when and where was purchased at what amount.