Abstract
The growth of international interconnected computer networks and the pervasive trend in commerce of using these networks as a new field for business operations stimulated demand for new payment methods. These new methods needed to acquire unprecedented levels of security, speed, privacy, decentralization, and internationalization for digital commerce to be accepted by both consumers and businesses. Three such electronic payment methods are examined: 1. the generic, widely used electronic fund transfer, 2. the proposals for a digital cash standard, and 3. the real-world technology called Ecash. These methods are examined in terms of the dynamics of transaction clearance, and the effects on money supply and the macro economy.
INTRODUCTION
THE extraordinary growth of international interconnected computer networks and the pervasive trend in commerce of using these networks as a new field for business operations stimulated demand for new payment methods. These new methods had to acquire unprecedented levels of security, speed, privacy, decentralization, and internationalization for digital commerce to be accepted by both consumers and businesses. This report analyzes three such electronic payment methods:
*The generic, widely used electronic fund transfer
*The proposals for a digital cash standard
*The real-world technology called Ecash
These methods are examined in terms of the dynamics of transaction clearance; the effects on money supply and the macro economy; and their classification in terms of money and cash. This report does not go into detail on the countless encryption systems, protocols, algorithms, and other technical matters concerning the new systems. The need to pay for transactions is the root of ...