What is digital cash?

What is digital cash?

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Digital cash is a system that allows a person to pay for goods or services by transmitting a unique number from one computer to another.

Most digital cash systems follow the process given below:

• A participating bank issues cash numbers or other unique identifiers that carry a given value, such as ten dollars.


• A user purchases the digital cash certificates from the bank. The user must have an account with the bank from which the money is withdrawn.


• The user transfers the certificate to the vendor to pay for a product or service.


• The vendor deposits the cash number in any participating bank or retransmits it to another vendor.

Note: The vendor can check the validity of a digital cash number by contacting the issuing bank.

Digital cash (like real cash) contains a unique number and is anonymous and reusable. No information is sent from a buyer to a vendor while using the digital cash for purchase.

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