e-currency

 EMV

EMV (Europay MasterCard Visa) is a worldwide standard for payment cards that provides global interoperability between all cards and the acceptance networks (Payment Terminals). The EMV standard is also applicable to mobile payment solutions such as mobile EMV with NFC (Near-field-communication).

EMV Payment is based on chip&PIN technology i.e. the use of a secure element (Certified Silicon chip) and a PIN code used by the cardholder to secure his/her payment transactions. A vast majority of countries have already experienced a migration from their key financial institutions from an older technology based on cards using a magnetic stripe to store the cardholder credentials to the more secure, more interoperable EMV cards that can be used across the world. The rationale and motivation for this motivation is threefold: First the level of fraud is drastically reduced in markets where EMV is deployed, second cardholders can use their payment cards when travelling abroad thanks to the ubiquity of service of the EMV global architecture, and third there is an incentive to migrate to EMV support for merchants who don’t want to bear the financial liability of fraud such as markets that are supporting older magnetic stripe technology.

Security-wise, EMV DDA (Dynamic Data Authentication) offers best in class security with common criteria certification establishing a clear and know benchmark to measure security. The EMV standard supports both contact and contactless transactions, enabling new applications such as contactless payment and also “combi-cards” with multiple services such as Payment + Transport. ​

What is e-currency?

E-currency is money that is exchanged on computers. “E” is the first letter of the word “electronic” and “currency” is a money system. You can think of e-currency as Internet money.

Buying and selling products and services on the Internet is possible because of e-currency. In the present time, more security on the Internet means more people are now buying and selling online. Modern security means it is now safer to deal on the Internet, but there are still some risks involved.

Credit cards are a popular example of e-currency. E-wallets (online money vendors) is another.

Benefits of e-currency

With e-currency, banks now offer services where customers can send money from one place to another without using cash. Using e-currency, customers can pay bills, change money from one account to another, and pay for things they want to buy such as food, a car, a television or a service such as Forex Trading.

It is now quite easy to exchange money all over the world using e-currency. Modern technology makes money exchange fast and secure.

 How is e-currency used in the Forex market?

In the online Forex market, e-currency is the main form of money used. All trading is done on computers using the Internet. Forex traders can still deposit money into their account at the market maker in the old fashioned way (e.g. – via bank wire, or by sending checks by mail). Once such deposit is accepted – they can trade Forex online. Most traders, however, use their credit card or other form of e-currency to deposit funds to their Forex account. Once a trader wishes to withdraw funds, they are wired directly to the trader’s bank account.

If you want to start trading, open an easy-forex® account. Your account contains your e-currency, which is your Internet money. This is what you use for trading. easy-forex® accepts payment with major credit cards or Bank Transfer.

E-gold and e-silver

E-Gold and E-Silver refer to Forex trading of Gold (XAU) and Silver (XAG). Since this is “Forex trading” or “OTC” (meaning “over the counter” and not via an exchange or a stock market), no actual metals (such as real gold or real silver) are traded. What is traded is a contract of their price. The unit for such XAU or XAG is one ounce (about 30 grams). Units of XAU and XAG are quoted and traded in USD.

Trading in gold and silver is electronic, the same as other currencies. Gold and silver are traded against the United States dollar only. You do not buy and sell the physical thing. Think of the gold and silver as another form of e-currency. The sign for e-gold is XAU; the sign for e-silver is XAG.

You can read more about gold and silver and online oil trading.