Financial markets generally allow banks to renegotiate the debt they have, at rates determined by the risk of non-recovery of the debt (the borrower can not or will not pay). The conceptual problem of private money is to see how private agents could issue debt with currency function. To do this, we must consider is how determined the value of the currency issued and the manner of determining the value of the currency in question and guarantees can provide a potential transmitter.
According to a financial news, hard currency or strong currency is a currency whose exchange rate is compared to other medium and long term stable or rising currencies. Hard currencies are typically characterized by low inflation and full convertibility and fungibility (interchangeability and easy comparison). Contrary to it is a soft currency or weak currency. This is characterized by devaluation in the currency market (and usually higher inflation up to galloping or hyperinflation). The hardness of a currency may fluctuate over time.
Currency coverage
A connection with a currency coverage (eg, gold standard) is not mandatory. Also, backed currencies may be subject to inflation (eg price revolution) and do not necessarily have to be hard currencies. However, the introduction of cover, especially a currency Boardes are often a useful tool, the stability of the external value of a currency is to be improved, since the possibilities of inflation are low.
Accordingly, hard currency country identifies countries with hard currency. Hard-currency countries are preferred investment countries . Their economic policy is characterized by seeking monetary stability. The euro is a strong currency.
Payment systems
As featured in Breaking Financial News, electronic payment systems can be categorized as follows: prepaid: execution of the payment before buying, Pay Now: debit from the customer at the same time with the purchase. Pay Later: debit the customer account after the transaction
Methods that have the same base or foundation (technology, methodology, underlying medium) operate in specific ways. Categorization on the basis of the hardware and software components (for example, categorization in hard-and software-based systems or in cards and network money)
Since the usual forms of categorization are not necessarily suitable for a reasonably acceptable definition of common providers, it requires a mixed form. E-payment systems are divided as follows: Access Products, Prepaid Products (Prepaid procedure), Collection systems and Mobile payment systems.
Providers offer several procedures under which the customers can select. Thus, some providers do not place flat in only one category.
Electronic money provides the following special requirements. Users of electronic payment make legitimate demands for simplicity, availability, speed, anonymity, divisibility (change) and safety (counterfeit money).
