An Introduction to the Currency Based E currency

Just like the Gold backed Digital Gold Currencies (DGC s) .Currency backed Digital Currency is another type of e-currency but been backed by the hard currency .Most of those currency backed digital money are backed by USD and EURO for example Paypal ,NetPay,EMO,and Stormpay.

Just like the DGCs the DC has the same key function for using in the internet related commercial applications.

Pro and Con

DC (digital currency) is widely used in the internet as the medium of internet related commercial actions. This provides those users a quick, simple and safe way for shopping on-line instead of showing their credit card information to merchant who they do not know and far away. But however .DC is some how been restricted in some regional areas which is defined by the currency they choose to be backed .The major reason is the floating character of exchange rate between the hard currency and the local currency often used by the internet user. For example, an internet user who lives in Japan may lose money when processing the currency exchange from USD to JPY if he/she does not watch out the international economics careful enough.

So most of the e-currency company backed by hard currency become big giant that is just because the number of user who accept this currency is big for example PayPal .But no one will guarantee if Paypal can do the same good job in the future hard currency such as RMB in China if Papal does not provide RMB base payment service.