Acting like real cash except that it’s not on paper, digital money comes in the form of digital codes that are stored on a microchip, a pocket card, or on the hard drive of the computer. This can then be used for transactions with any vendor who accepts it. The special bank account code can be used over the Internet to purchase a desired item or be used in the local supermarket when presented in card form. This form of exchange is accomplished when everybody involved in the transaction – the bank, the user and the vendor, all agree to recognize its worth.

It is believed that the Internet is the natural environment in which digital cash will flourish. The Internet itself can only continue to grow if it becomes commercial. However, questions as to security need to be better addressed.