Money. Credit. Banks. Electronic money (ED), its properties and features (lecture notes)

Free technical library

Lecture notes, cheat sheets
Free library / Directory / Lecture notes, cheat sheets

Money. Credit. Banks. Electronic money (ED), its properties and features (lecture notes)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

Comments on the article

Table of contents (expand)

Electronic money (ED), their properties and features

In 2003, half of all payments in the United States were made using ED. Stages of development of ED:

1) 1960-1980 - a system of wholesale electronic payments is created, credit risks are reduced, electronic transfers are developed;

2) since 1990-... an electronic system for various payments, payments become anonymous, transaction costs are reduced, and the role of intermediaries is reduced. There are three main approaches to the definition of ED: European (ED is a monetary value stored in electronic form on a technical device, which can be widely used to make payments in favor of third parties without the need to involve bank accounts in transactions and which functions as a prepaid financial product) , American (treated as a new type of financial services) and Asian (combined two main approaches - monetary value in electronic form). That. There are three theoretical interpretations of ED - demetalized form of banknotes; prepaid financial product; medium of exchange. Character traits:

1) the monetary value is recorded on an electronic medium; there is no link to a credit institution account;

2) emission of electronic documents is a special type of financial activity;

3) ED - interest-free obligations of the issuer;

4) payment by electronic means is final.

EDs meet the basic characteristics of credit cards - they perform the function of a means of payment and are guaranteed. Main advantages: flexibility in payments (they mediate payments in the electronic economy and the traditional one); low cost of transactions (compared to the same checks); high level of anonymity (does not require authentication of the payer’s identity); the ability to directly manage your funds. There are 2 main types of ED systems: based on multi-purpose prepaid cards and based on “network money”. We can distinguish 12 desired properties of ED: convenience, security, anonymity (privacy), universality (wide applicability - widely known and accepted), offline compatibility (i.e. the payer must be able to make a payment without a third party), support for micropayments (the ability to make payments up to $10 and the profitability of such payments), two-sidedness (the ability to transfer money to other users), portability, divisibility, durability (no expiration date), exchangeability (conversion into cash), free unit of value (must provide for the possibility of denomination in non-state currency). Risks: operational (shortcomings in the organization of the system), reputational (negative opinion about the institution as a result of the issuer’s actions), legal (losses as a result of legal actions). There are also general risks inherent in credit money: credit risk, risk of loss of liquidity, risk of interest rate changes, risk of loss of control, etc.

Author: Shevchuk D.A.

<< Back: The concept of the type and form of money (D)

>> Forward: Monetary systems (DS), device, types

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ International private law. Lecture notes

▪ Roman law. Crib

▪ History of psychology. Lecture notes

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive

Immunity saves tattoos 11.03.2018

Our skin is regularly updated, and this applies not only to the epidermis, in which the replacement of old cells with new ones takes only a month, but also to a deeper layer - the dermis. But if the skin is renewed, then why do tattoos stay on it for so long?

To understand why the tattoo pigment doesn't fade away as the skin renews itself, researchers from the French Institute INSERM tattooed the tails of mice and observed how the skin cells behave.

When ink gets into the skin during tattooing, it attracts the attention of macrophage immune cells. Their function is to eat everything alien and potentially dangerous. Pigment particles are also perceived by macrophages as something that should neutralize, and absorb them. But the macrophages themselves don't live very long either. It would seem that after the death of the macrophage, the paint that was in it can now come off along with the dying particles of the skin.

However, this "orphan" paint is picked up by other macrophages that have replaced the dead ones. In the experiment, mice a few weeks after the tattoo were given an injection that killed all macrophages in the skin (without harm to the health of animals) - however, the tattoo remained in place: new cells came to where it was and absorbed the paint that was found in the intercellular space of the dermis .

In another experiment, a piece of tattooed skin was transplanted from one mouse to another, and after six weeks, all the dye that was in the transplanted skin passed from the cells of one mouse (donor mouse) to the cells of another. According to the authors of the work, immune macrophages are the only cells in the skin that can absorb tattoo pigment, and tattoos remain on the skin for so long precisely because of this ability, and also because macrophages pick up the paint left after dead cells.

It is known that many people would like to reduce their tattoos, but now it takes quite a long time to erase a tattoo. It is possible that the process can be accelerated if macrophages on the tattooed area of the skin are purposefully destroyed for a while - of course, doing this in such a way as not to damage the immune system as a whole.

Other interesting news:

▪ Samsung paves the way for semiconductor business

▪ Light waves turned inside out

▪ mosquito prick

▪ HPP845 - digital and analog humidity sensors TE Connectivity

▪ Genetic analogue of the transistor

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ site section Chargers, accumulators, batteries. Article selection

▪ article The bony hand of hunger. Popular expression

▪ article What color is the most expensive caviar? Detailed answer

▪ article Toolmaker. Job description

▪ article Diagram of a digital indicator. Encyclopedia of radio electronics and electrical engineering

▪ article Raising the chosen card returned to the deck. Focus Secret

Leave your comment on this article:

All languages of this page

Home page | Library | Articles | Website map | Site Reviews