Q:

What are the advantages and disadvantages of electronic cash?

A:

While electronic cash does provide a more secure means of storing and tracking money, it is not entirely immune to theft. There are a number of different advantages to digital money, but a similar number of disadvantages exist. In addition to security, it is also easier to store and move from one institution to another.

The benefits of digital currency include the ease of accounting it provides, and the universal nature of it. Money from one country can be transferred directly to another, via wire transfers, without any of it being lost in the process. However, one of the key drawbacks is the vulnerability of banking systems to electronic fraud and Internet security breaches. In the past, physical currency stored in a bank was only accessible by those bold enough to challenge the guards and break into a vault. Today, there is little physical risk involved in bank theft for those diligent enough to learn how to circumvent the computer security of a bank. In this case, accessing a virtual bank only requires keystrokes instead of the threat of physical injury. It's still illegal, carrying hefty sentences in most countries, but much more difficult to track and prosecute simply because it can be done from virtually anywhere.


Is this answer helpful?

Similar Questions

  • Q:

    What are the advantages and disadvantages of smart cards?

    A:

    Smart cards offer convenient and quick methods for conducting financial transactions but leave users at risk of security breaches such as stolen passwords and identity theft. Smart cards are lightweight and highly transportable. With the simple swipe of these cards, consumers can make purchases quickly and easily; however, they can make spending all too easy and pose security risks.

    Full Answer >
    Filed Under:
  • Q:

    What are some advantages and disadvantages of electronic media?

    A:

    Electronic media can report on news stories much faster than established media organizations, but they may not have the resources to verify their stories and can contribute to the spread of misinformation. Social media allows citizen reporters to spread news as it happens, but a single piece of mistaken reporting can spread across the globe with amazing speed.

    Full Answer >
    Filed Under:
  • Q:

    What are the advantages and disadvantages of electronic communication?

    A:

    Electronic communication enables information exchange both synchronously and asynchronously across large distances and in a large number of formats, but disadvantages include security problems, a lack of access and potential misunderstood messages. This type of communication offers people many new ways of transmitting ideas and data.

    Full Answer >
    Filed Under:
  • Q:

    Where can you cash a MoneyGram?

    A:

    A money order from the MoneyGram financial service can be cashed in the United States at various locations, including banks, grocery stores and dedicated check-cashing facilities. It is possible to deposit it into a standard checking account at a bank, where it is typically treated the same as cash. When presented at other check-cashing venues, the funds are typically available right away as long as proper identification is provided.

    Full Answer >
    Filed Under:

Explore