Pros and Cons of Electronic Money and Blockchain

electronic money and blockchain

Do you exactly know how to define electronic money? It is the money present in a banking computer system that enables to make online transactions. It is the most convenient method of payment. Therefore, it has got much popularity these days.

By Opting for the electronic payment system, you can make cashless payments with ease for purchasing goods and services through cards on the internet. It has multiple uses like it reduces the cost of transactions and saves time. In addition, it increases sales.

Blockchain has a strong association in protecting electronic money that includes the top 10 cryptocurrencies as well. Blockchain offers several techniques that can strengthen its use and is advantageous for it.

Here are the most common pros and cons of electronic money.

Pros of Electronic Money

1. Enhance Convenience and Speed

Electronic payment is more convenient compared to traditional payment methods. It allows you to pay online for goods and services from anywhere across the globe at any time. In addition, you do not have to wait for sending or receiving transactions for hours. It can minimize the risk for higher security by carrying cash from one place to another.

2. Increase in Sale

Traditional payment methods are minimized in this technological world, and internet banking and online shopping are increasing. Everyone prefers to use electronic forms for payment. In addition, e-payment has increased the number of sales for customers, and they can also enjoy multiple advantages compared to traditional methods.

3. Minimize Transaction Cost

In addition to the above benefits, it can reduce additional charges for making payments that you have to pay while using any traditional method. Furthermore, most e-transactions have almost no accounts so that you can save your money. Hence, online transactions can save thousands of dollars on the name of transaction fees.

4. Protect from Fraudulent Activities

Electronic money incorporates complete details of each transaction made, so it is easy for banks and financial institutions to record transactions. In addition, it has made it easy to trace all transactions. As a result, it increases security from fraudulent activates and malpractice. So you can make transactions for even a massive amount of money.

5. Prompt Transaction

One of the most highlighted benefits of electronic money is; it offers prompt transactions that can seep up all work in a shorter time. It means that you get transactions completed in seconds from any part of work with just one click. Moreover, it saves you from the hurdle of physical delivery of payments, and you do not need to wait in long rows to get prices.

6. Keep History Record of Payment

In addition, it can store all data digitally, and this historical record of each transaction makes it possible to use electronic money effectively. In this way, you can heck record for oldest payments and get aware of detailed expenditure. It can also record reports of financial history in detail.

Cons of Electronic Money

Alongside multiple advantages, it has some drawbacks that you need to consider. However, organizations can take some essential steps to minimize the cons associated with electronic money and maximize its benefits.

1) Availability of Infrastructure

It is sure to have infrastructure that runs the electronic system. It can include electronic accessories like a computer, laptop, stable internet connection, and smartphone. Utilizing these all digital technologies cost companies that may cause them high expenditure.

2) Security Hacks

There is no doubt that electronic money has created ease in many ways. Still, the online system is vulnerable to multiple hacks. It can include sensitive information, online frauds, and money laundering cases. Although, it protects against fraudulent activities associated with the traditional payment method. On the other hand, technology has allowed hackers to invest in new hacking methods through online processes. it can

3) Online Scams

Online scam is the biggest threat to electronic money. You may also receive such messages from a particular organization or bank that keeps convincing you about some attractive scheme to invest in. However, authentic systems and security measures are available to catch online scams. Yet, there is a risk to the extent that you need to be careful about making any online transaction.


Although electronic money has introduced ease and many benefits to banks and individuals, there are some risks associated with it. Nevertheless, there is a need to implement electronic money payment methods properly. In other words, some necessary steps can minimize the negative impact of electronic money usage.

Post a Comment

Previous Post Next Post