IndexAdvantages and disadvantages of using electronic moneyAdvantages and disadvantages of using physical cashConclucionDigital currency, also called electronic money, is the new idea to be implemented as a replacement of physical money, also called electronic money. This innovative idea has already been officially regulated since December 2012 as a payment method and is also used to carry out payment transactions. This type of digital currency can be stored on devices, cards, or a server. For this essay I would analyze if we were to get rid of paper money, what are the advantages and disadvantages of using electronic money and physical money and how this is more of an advantage rather than a disadvantage to the economy. For example, we can purchase stocks, transfer funds and offer a variety of other services without the need to handle physical cash or checks if banks provide such services online. One of the significant effects or advantages is that we don't have to queue to make transactions; this way we will save time and consumers will have greater privacy when shopping on the Internet. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayThe constant improvement of information technology in the telecommunications sector has allowed virtual electronic money to have constant growth since its appearance at the end of the twentieth century, becoming everyday tools for the general public. Since the beginning of the appearance of electronic money, mistrust and fear among users has spread, due to ignorance or lack of knowledge in the technological field and also due to the lack of seeing the physical evidence that they are used to considering as paper money or physical currency. Around the world, the use of electronic money as a means of payment has become as common as the use of physical currency worldwide. Electronic money is a currency system, like the euro in Europe and the dollar in the United States. E-money can be a simple new currency in terms of denomination or simply different in its form of electronic notation. The origin of its name is based on the fact that it enables interconnected systems through automated transactions and without the use of paper or metal, accelerates the dynamics of transactions, and liquidity pressure is removed from tangible currency. Concepts of electronic money and physical money. What is money? Currency is current money that has legal value. It is therefore used as a means of payment for economic exchanges. It is mainly composed of coins and banknotes, although in recent decades checks, cards and electronic money have also been integrated into this concept. Nowadays, for an asset to be considered money, it must meet three fundamental criteria: Serve as a medium of exchange for commercial transactions. Function as a unit of account, which can be used to determine prices in an economy. Store of value, which means that the currency can maintain its commercial value for the future, without being devalued. However, for money to have value, it must be officially approved by the issuing entity. Nowadays, it is governments who, through laws, establish which currency is legal tender in each country. On the other hand, there are institutions, such as central banks, which are tasked with regulating and controlling monetary policy and the creation of banknotes and coins according to their demand and need. Money was created in the past to avoid the inefficiencies and inaccuracies of the barter systemin the economy. The word, as such, derives from the Latin denarĭus, which was the name of an ancient coin of the Roman Empire. The name is composed of the terms deni, meaning 'every ten', and the word decem, which translates 'ten', since originally one denarius was equivalent to ten aces. Mobile banking and e-money: what's the difference? The two are different from each other, but also from the dynamics of the operation: there is a tendency to confuse system, coordination or form of payment; It is therefore appropriate to review the three relevant issues to be clarified. Mobile banking is a tool with which a bank tries to reach its users in a more dynamic way in offering its services. Baks, for example, offers this service because Mobile Banking allows users to access many services; how to check the balance of your financial products, pay with credit cards, pay for utilities or mobile phones; All companies would like to stop asking banks for guidance and make their transactions faster, safer and more agile. These, among other corporate dreams, have become reality thanks to technology and services such as Mobile Banking, a channel capable of making life easier for Consumers. furthermore, it generates the opportunity to collect the services required by this path. To simplify, the mobile phone would be the modern version of banking access if we consider the evolutionary line that starts from the Banking Agency up to the ATM and Online Banking. and also the non-bank correspondent (a third party acting as a representative of the Bank). All of them, in each of their forms, together with mobile banking, are simple channels to access the customer and offer the bank's services to the extent that each of the financial institutions designs it, offering services differentiated in prices, in the form of commission. On the other hand, physical money or cash refers to that which is presented in the form of coins or banknotes (paper money) for making payments and economic transactions. Advantages and Disadvantages of Using Electronic Money Below are the advantages and disadvantages of using electronic system for money:Prevention: The use of electronic system for business transactions provides the ability for controlling entities to monitor the existing funds for these, which can be considered a disadvantage, since there are some transactions that require confidentiality, but an advantage from the point of view of preventing money laundering crimes. Reliability: The use of electronic channels reduces illicit activities related to the use of cash, as well as acting as a tool to prevent crimes such as theft, since cash is the currency of exchange for obtaining various stolen objects. However, there may be an increase in cell phone thefts, as it will be the main item for electronic money transactions, as well as the possibility of cyber crimes. Segregation: Use of cell phone is the only requirement to use the system of electronic money, therefore despite being an inclusive means of payment, ignorance in the use of the device would lead to a situation of marginalization for these sectors, but since the USA has a high population index that handles this type of device, this system would become a means for the inclusion of those people who do not have access to the financial system in a traditional way. Unnecessary consumption: this can be classified as one of the most considerable disadvantages of using an electronic money system in countries classified as consumerist, since the use of cash requires its withdrawal from banking institutions, so if you do not have this, purchasing power decreases; however, having the ability to use all the capitalavailable in an account, the item could be increased by unnecessary charges. Government control: it is a factor of great importance for citizens and for the State, so it is necessary that the State takes care of the existing funds responsibly, leaving this responsibility to the private bank; In the long term, this will give the State an important power of control, which could be positive or negative depending on the political situation that the country goes through at different times.System defects: since it is a computer system, several faults could be presented within the computer part or if the electronic device were damaged, the citizen would not be able to carry out a commercial transaction, a situation which would cause considerable inconvenience to users of the system. Advantages and disadvantages of using physical cash This is a topic that covers everything related to personal finance, each person should apply what is covered according to their preferences and profiles. Having cash with us makes us feel relatively powerful, cash is an extremely liquid financial instrument, we can exchange it for many things with surprising convenience. On the other hand, it can be dangerous especially for those who live in dangerous cities. But it is also dangerous for our personal finances if our partner goes to a shopping mall with a large amount of cash in his wallet. what to do, do we spend it all? Do we pay with credit cards? Do we pay with a debit card? A mix of these options? Here are some advantages and disadvantages of using cash: Protection against identity theft: By using cash to pay our expenses, we greatly reduce the risk of having our credit or debit card cloned. Lower propensity to spend: if we have a relatively low amount of cash with us, and we discard the idea of ​​using the credit card, which will force us to limit our spending and is a great way to adopt habits aimed at obtaining greater savings for future needs. In other words, a life with unnecessary expenses kept to a minimum. This does not apply if we go shopping with large amounts of cash. It prevents us from falling into the spiral of debt: used wisely, cash allows us to spend the money we actually have. We must remember that when we use credit cards to pay for our things, we may be spending money that we don't actually have. Cash can be susceptible to theft or loss: As the likelihood of card cloning decreases, when we carry cash it can be stolen or simply lost. It is more difficult to keep track of expenses: by using different cards to make our payments, these are reflected at the end of the month in our bank statements. Using cash makes this tracking a little more difficult and requires extra effort on our part to know exactly what we spend our money on. We prevent you from building a credit history: If all of your spending is in cash, you may not be able to build a credit history, either with the use of credit cards or with loans associated with such cards. Most people are not in favor of using credit to purchase consumer goods, but that history can be used to obtain business credit to start or expand a business. These are just some advantages and disadvantages of using cash. The advice is that everyone analyzes their profile and preferences in order to use cash in the most appropriate way. An interesting option is the use of debit card, which combines the best of both worlds, cash and plastic money. In fact, I think we should encourage and.