Credit cards from an economic perspective

Credit cards from an economic perspective

Many forms of electronic money are currently being developed. It is useful here to present three modern collections: debt systems, electronic credit, various forms of smart cards, and actual digital money that carries many distinctive qualities. For cash.

electronic debt and credit systems are in place and are already in use. When a consumer uses an ATM card to buy, the money is transferred from his account to the dealer account.

Credit cards are also used for online payments. Software allows billing to be paid electronically, and is only a short step to reach real electronic checks that can be transmitted to the beneficiary, shown and filed online.

Electronic account and credit registration systems are a new and more convenient way to pay, but they are not modern payment systems. At the end of each series of transactions there is a traditional bank or credit card.

Smart cards and digital money represent new payment systems with terrible effects and consequences. Smart cards are plastic credit cards, many of which are currently used as telephone payment tools.

The smart card is not more than a registration card on the account does not need the approval of the bank at each transaction, the clearing and settling of accounts between the two banks occurs daily and the value settles in the account of the party Third. There is no reason to limit the function of smart cards to those limits. Banks and other institutions can add value to smart cards through loans and payment for services or products.

Digital money can also take a physical digital form so that they are valuable units in the form of bytes (a memory capacity measurement unit) stored in the pc memory, which can be supported by backup calculations from Real money.

Electronic money and the growing importance of digital markets can create many problems for the central government's control of the economy and the behavior of economic actors, as well as the surrounding boundaries. National markets and nation states are more porous.

In a year when real electronic money becomes a daily reality, the government's fundamental role in a free-market economy will be redefined, and the necessity of borders and geography will be radically redefined.

These problems reflect a traditional disconnect between domestic and international issues. Meaning.

The new digital world presents a number of issues, including:

1- Can banks monitor the growth rate and the amount of money supply?

2- Will there still be official foreign exchange transactions?

3- Will e-cash and Electronic commerce widen the gap between the wealthy and the rich?

4- Will fraud and criminal activity increase in the Electron money economy?

Digitalization or switching to it is a separation of money and money from its geographical anchors. The international financial system, consisting of hundreds of thousands of computer screens around the world, is the first international electronic market. This will not be the last market.

The beginnings of the 21st century see Electronic money, smart cards and digital money as the world of competing electronic currencies.