David Chaum invented digital cash in 1988 and founded Digicash, one of the first companies in the area of digital cash. However, Digicash only attracted $160k in funding over two years, declared bankruptcy in 1998, and was acquired by eCash Technologies. eCash also later struggled and was purchased by another company. Digital cash allows users to purchase credits electronically and store them in a digital wallet on their computer to make purchases online. It facilitates private and anonymous transactions between payers and payees through a financial network. An ideal digital cash system is secure, anonymous, portable, supports two-way transactions, can be used offline, has wide acceptance, and is user-friendly.

1. Presentation By
Miss. Urwi Keche
LL.M IIIrd Sem
Dr. Panjabrao Deshmukh College of Law, Amravati

2. David Chaum
Digital cash was invented by David Chaum in 1988. in 1990 he founded
Digicash, a pioneering firm in the area, but attracted only $160k US dollar in
two years, declared bankruptcy in 1998, and was bought by eCash Technologies
. Now eCash is having its own troubles and has been bought by another
company Called Info Space.

3. What is Digital Cash?
Definition Examples
 Digital cash is a system of
purchasing cash credits in
relatively small amounts,
storing the credits in your
computer, and then spending
them when making electronic
purchases over the Internet.
 e-coins, E-wallet, transfer
money

4. Financial
Network (the
Bank)
A payee or a shop
(Bob)
Withdrawal –
Alice transfers
some of her money
from her bank
account to her
wallet through
smart card or PC
A Payer or
Consumer (Alice)
Payment –
Alice transfers
her money from
her wallet to
Bob’s
Deposit –
Bob transfer the
money to his bank
account

6. Ideal Properties of a Digital Cash
System
 Secure
 Anonymous
 Portable
 Two-way
 Off-line capable
 Wide acceptability
 User friendly