This is more like physical cash, and provides many advantages to users concerned about some Orwellian 'Big Brother' knowing about their financial transactions. A major problem with electronic representation of cash is the potential for double spending. If the issued coins are not kept track of efficiently, or they can be somehow duplicated, then the same coins could be spent twice with two different vendors. This problem adds to the complexity of electronic representation-based systems. The use of encryption technology in these payment systems is a double-edged sword.
Encryption provides security, but demands processing time.
The processing required for each transaction determines the processing power necessary to run the system, and thus partially determines the cost to run the system. The cost to run the system is charged to users for each transaction made. If this transaction cost is significant, it prohibits the idea of microcent transactions discussed in the next chapter. One final point is that the average consumer will not shop on the Web until a de facto standard emerges. Until this happens, the average user will continue to believe that putting their credit card on the Web in any way is essentially asking someone to steal it.