With the development of technology, the number of Internet users is growing. More and more young people are getting acquainted with the calculation using electronic money. And for this you do not need to go to the bank, sit in lines and wait until you get an account. You choose any payment system, register in it and, if necessary, verify your account.
The history of the development of currency in the cloud
It gained its wide development thanks to the Central Bank of the European Union and an increase in the number of Internet users. The first studies on the nature of electronic money and electronic means of payment were conducted in 1993 in the EU.
At that time, they were considered prepaid cards with which it was possible to pay for various types of services. As a result of the study, electronic money was recognized as a promising direction, and in 1994 it was officially legalized.
The European Central Bank permits various operations with them. But monitoring, constant data exchange and monitoring remains with the bank, while the distribution of electronic money is prohibited for unauthorized persons.
Creation of the first bank cards
The development and accounting of electronic funds began in 1993 with the issuance of payment cards. At the forum of countries included in the G10, it was decided to monitor electronic currency in all countries of the world.
For this, the Bank for International Settlements was created, and with the help of central banks around the world, it daily analyzes the growing popularity of electronic money and settlement systems.
From the very beginning, it was assumed that data on the use of electronic funds would be confidential. Only leading central banks had access to them, but in May 2000 they became available to everyone.
In 2004, a study was conducted on the use of electronic money in countries around the world. About 95 Central banks took part in the event with the active support of local authorities. And as a result, it turned out that out of 251 countries, only 37 countries use electronic funds in the calculation.
Electronic money - what is it?
The use of this term began relatively recently and often incorrectly. In colloquial speech, no one uses a cumbersome name, but they say it easier: "money on a card" or "money on" WebMoney "," Qiwi "," Yandex ", etc.
When we hear “electronic cash settlement”, we mean a regular purchase in a store or a transfer of currency to others. Thanks to the introduction of innovative technologies in the life of mankind, electronic money has become widespread. And they mean a very wide range of means of payment.
The relative availability of online wallets has created mini-chaos in the electronic payment system. Each company that owns Internet currencies regulates in its own way and has its own laws. Therefore, there is no single definition of electronic media, which could clearly answer the question of the relationship of online money with the economy and law.
What are they provided with
Working capital used in the calculation in the form of electronic cash has several historical contradictions.
- They safely pay for services, and they are a complete replacement for paper money.
- Their liquidity is determined by real money that is in the accounts of the organization.
Financial analysts suggest that over time, electronic means of payment will become the main and replace traditional paper money.It is also estimated that central banks will issue electronic money and begin to regulate it more seriously.
Their legality
Legally, online money is a means of payment that does not belong to anyone. And they are not subject to any strict regulation, and can revolve, both in state banking systems and outside them.
Without the Internet, all payments will become impossible, because the stores will lose contact with the bank and will not be able to confirm the payment. Roughly speaking, the interaction between the place where the servers are located and the store is as follows:
- When paying by bank card, a request for withdrawal of funds is sent to the bank.
- If there is no money on the buyer's account, the action is refused, and vice versa.
But not only cards issued by banks can be used as the main means of payment. Transfers in the form of electronic money are also carried out by other devices with chips. It can be key rings, NFC mobile technology, bracelets, etc.
Types of Electronic Cash
It is accepted between countries that they are classified into two types:
- Smart cards.
- Network Based.
Both groups are divided into anonymous systems and non-anonymous ones. In the first case, the systems are allowed to exchange, sell or buy without personalizing a person. And in the second, personal identification is required.
Most large online payment systems choose a personalized method, thus tracking payments by electronic money. And at the official request of state power structures about certain operations, the payment system gives out data about the user and the money exchanges made by him.
Proponents of the theory of world conspiracies do not accept this method, believing that the state intervenes in the personal life of a person and confronts freedom. In fact, personification is an excellent method for combating corruption and international terrorism.
Government and online currency
It is also customary to divide electronic money into:
- State owned.
- Owned by individuals.
In the first case, the money is secured by the national currency of the country and is part of the state payment system. Their emission is controlled by the state in accordance with the law.
In the second case, electronic money is in any convertible currency that is available in the system. Their number is not regulated in any way, except for the predefined limits in the online wallet itself. But, depending on the country in which the resident is located, their circulation can be controlled by state structures.
Moreover, in no way do they support the liquidity of money and do not provide their national currency with their reliability.
European Central Bank
According to the decision of the ECB on the issue of what it is - electronic money, they are considered everything that contributes to access to a bank account. Namely:
- Microprocessor or magnetic electronic cards.
- Online banking.
- WebMoney, Yandex.Money, Qiwi, PayPal, etc. services.
They are credited to the sender's account through special services. In simple terms, a user of online funds comes to the bank, transfers his paper money to him, and the bank converts them into electronic counterparts.
Also, following the position of the European Central Bank, the electronic funds of the organization or individual are not: discount, fuel, telephone and other cards.
They are not provided with any currency and therefore cannot pay for services, but provide discounts and various bonuses. Payment will be considered the moment when money is withdrawn from the buyer's bank account through the use of online banking technologies.
Emission
There are a number of political issues that are related to electronic payments. There is still no decision on organizations that issue online banknotes.This is connected not only with the state issue of money, but also with private companies.
The law that would regulate the increase in the number of banknotes has not yet been adopted in any country. In the European Union, the Institute of Electronic Money deals with the issue of emissions.
In Nigeria, India, Singapore, Ukraine, and Taiwan with Mexico, only banks are issuing new funds. To create electronic money in Hong Kong, you need to get a deposit license.
The following organizations are involved in paper money imitation in the Russian Federation:
- Banking structures.
- Nonprofit organizations.
At the same time, they must have a license for operator activity, that is, adjustment of payments without using bank accounts.
An example of working with WebMoney
As noted earlier, some payment systems require identification. For example, to work in WebMoney you will need:
- Take a photo of your passport.
- Himself with a passport.
- Indicate your place of residence, then there comes a letter with an activation code.
- Enter passport data.
Moreover, the use of dollars is not regulated in any way, and they can be used without verification. However, for the conversion, transfer, payment and withdrawal of funds from the wallet requires mandatory verification.
In the Republic of Belarus, national currency transactions in the WebMoney payment system are monitored by the state. And the withdrawal of money is possible only upon conclusion of an agreement with controlling structures, the approximate cost is about $ 10.
After that, the owner of the wallet can legally withdraw and withdraw his money. And when doing business, a tax will be paid.
Anonymity of online tools
Initially, it was understood that electronic money would be closer to anonymity than to personification. And the anonymity of transactions is determined by the payment system itself.
The state is extremely interested in information on the types of electronic funds and their users. Therefore, regulatory authorities are doing their best to increase the number of users who logged in to the network with personal data. To do this, they limit the amount of lump sum payments, increase the commission or set a threshold for the maximum amount on the wallet.
Cryptographic protection
To protect online money, David Chaum suggested using cryptography and encryption. To secure money transactions, he used “blind” digital signatures, which are almost impossible to fake.
At the same time, signatures prove the existence of paper money that "stands" for electronic money and provides it. The user sees only part of the necessary information, and the rest is encrypted.
Electronic Tools Development
In the near future, paper money will disappear altogether. In some countries, such as Sweden, residents pay with bank cards and actively use online wallets of payment systems.
The share of real money in the country's circulation is only 3%, the remaining 97% is electronic money. Sweden is technically well developed, and even donations to churches are credited via smartphones.
But there are also disadvantages of such payment methods:
- Electronic money can be stolen, according to 2017, hackers stole about 40 million rubles according to RIA Novosti, and TASS claims a space amount of more than 1 billion rubles.
- Lack of legal regulation.
- The need for servers that store data.
And this is not all the cons, but it's time to find out the pros:
- Relative anonymity.
- Portability of funds.
- Large amounts of money are stored on a small bank card.
- Low cost cards, if necessary, they can be easily replaced.
Total
In 2018, the number of bank card users increased; gradually, virtual money is being replaced by paper money.Progress does not stand still, and new types of currency appear that are currently impossible to regulate - and this is the main problem of modern technologies.