The means of payment that exists in purely electronic form is called "digital money". Electronic money or digital money is not tangible and is accounted for and the transactions are performed online using computers. Digital money can be exchanged using credit cards. the internet and smart phones. It can also be turned into physical money like in the cases of an ATM.
People being what they are get practical about creating their own currency as long as it is honoured. In Africa, sea shells were used until the 19th century as money. But gold practically useless but known for its short supply and lasting quality - has been the most popular non-currency form of money and is standard for central banks.
Now, in the age of the internet, and digital technologies, money is undergoing an exciting makeover with talk of virtual currencies, mobile wallets and software applications that pretty much do what gold has been doing for centuries and currency notes have been doing for a while. Technologies such as near-field communications are being used to make the mobile phone an instrument of payment without the customer having to sign a credit card voucher, thus making it more secure.
In general, software applications are being developed to substitute for money in various ways. Some companies like Starbucks allow "digital tipping' of its baristas through a mobile application. Pre-paid cash cards are being used to swipe instruments where customers do not need credit cards or even bank accounts. The Next Gen ATM machines will recognise your face through facial biometric technologies.
Bit coin, the most popular virtual currency started circulating in 2009. Its current market value has been estimated at around 8 billion, to 80,000 transactions occurring daily, according to reputed accounting firms. However, Washington's Internal Revenue Service ruled that bitcoin are not currency but more likely property and thus subject to capital gains tax.
Meanwhile, other virtual currencies are taking off and influencing politics. In Iceland, which saw its banking system more or less wiped off, during the 2008 global financial crisis, there emerged the euro coin, a new currency now estimated to be worth 11.37. This currency is aimed at fighting capital controls imposed by the Iceland government.
Crypto currencies are a very important milestone in this fight for liberty from political control. They bring the hope of a new era of free currencies immune to the meddling of politicians. In addition, money is undergoing an exciting makeover through innovations galore. Telecom companies the world over; for instance, with support from their central banks are offering customers 'mobile money' as a service. Another innovation that is much talked about is the mobile wallet and companies are helping their customers carry the equivalent of cash much like one carries travellers' cheques. in their handsets
Thus, more and more practical solutions are beings spawned across the planet to focus not so much on money's 'store of value' but as a medium of exchange.
