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Electronic currency (also known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency) refer as substitutes money in the form of notes or coins and transferred or exchanged electronically.
Example system sell electronic currency: PayPal and WebMoney will sell their electronic currency directly to the end user but Liberty Reserve is only selling through third party digital currency exchangers.


Type of E-money:
Identified E-money
 Contains information revealing the identity of withdrawer which withdrew money from the bank. Enable bank to track money as it moves through the economy.
Anonymous E-money
 In cryptography, e-money refers to anonymous e-money. There is unlink between withdrawal and spend transactions, once withdraw from account it can spent without leaving transaction trail.


Varieties of each type E-money:
Online E-money
 Online means that we need to interact with a bank (via modem or network) to conduct a transaction with third party. Online scheme is based in the blind signatures and keys cryptography.





Offline E-money
 Offline means that we no need to interact with a bank (via modem or network) to conduct a transaction, instead we can collect multiple coins/notes Spent by users and Deposit them later with the bank, i.e. merchant could go to the bank with our storage media to exchange e-money to cash.


References:
Electronic Money, or E-Money, and Digital Cash
Electronic money