What is Digital Cash?
Digital cash aims to mimic the functionality of paper cash, by providing such properties of anonymity and transferability of payment. Digital cash is intended to be implemented data which can be copied, stored, or given as payment (for example, attached to an email message, or via a USB stick, bluetooth, etc). Just like paper currency and coins, digital cash is intended to represent value because it is backed by a trusted third party (namely, the government and the banking industry).
Most money is already paid in electronic form; for example, by credit or debit card, and by direct transfer between accounts, or by on-line services such as PayPal. This kind of electronic money is not digital cash, because it doesn't have the properties of cash (namely, anonymous and off-line transferability between holders).
