What is E-Currency Exchange?
First, we will look at e-currency.
What is e-currency?
It's a foregone conclusion that we are now a global marketplace. The Internet has in large part made that possible. The Internet purchasing of goods and services is now in the Billions and expected to triple by 2022!
So, there are Buying and Selling transactions happening all over the world and in many instances, those transactions are not conducted in the same country. We all know that those transactions can be completed in several ways. Credit Card and PayPal, just to name two.
Now we get to the problem. (Yes, there are many problems with this, like Credit Card fees for the sellers are outrageous plus the risk of chargeback. And for the Buyer using a Credit Card. How many times have we heard of compromised Credit Card Databases?)
Maybe you have also noticed that some businesses also accept some form of e-currency. For example, E-gold, e-bullion, etc., there are hundreds of e-currencies. In basic terms, e-currency is Internet Money. As Internet transactions increase, so will the use of e-currency.
For this report, we will focus on the problem of currency matching between the Buyer and Seller. Perhaps you have purchased something on the Internet and noticed the seller would accept an e-currency of one form or another. If you owned that e-currency, you could complete the transaction immediately, no waiting for verification, no hassle, and no dealing with currency conversion! Otherwise, you may experience any number of delays and/or costs associated with the conversion.
Think of it as the same intent as with the creation of the EURO Dollar. The purpose of the EURO is to eliminate currency exchange delays and fees by working in a common currency. E-currency is the same, except it is for Internet transactions. Internet transactions are in the Billions of dollars and wildly expanding.
Unlike the Euro Dollar there are hundreds of different E-Currencies and growing. So just like any hard currency, there needed to be a universally accepted platform to exchange between currencies or to convert to hard cash. Hence the E-Currency Exchange.
The main advantages to E-Currency and the E-Currency Exchange are:
>> Much more secure versus Credit Card.
>> E-Currency exchanging is cheaper than Credit Card Fees.
>> No risk of Charge-Backs for the business
>> Instant acceptance of e-currency
>> And many more
So, in Summary, the E-Currency Exchange is a Clearing House for exchanging E-Currency either into another e-currency or into hard cash. This is a fee-based transaction where the E-Currency Exchange charges a fee to provide the platform for the other parties to conduct their business.
And E-Currency is essentially Internet Money, much like the Euro Dollar is to the European Union. It just has hundreds of denominations based on hard currency or precious metal.