Problem Of Identity Theft

Another challenge corresponding to the use of electronic money is the issue of identity theft. Identity theft is as appalling a crime as mugging someone on the street. Although generally speaking there is no physical injury involved in cases of identity theft, the end result is the same, and an innocent person loses his or her money. Identity theft may be the greatest challenge to the safe use of electronic money as a person with the right information can open a credit card account or obtain another kind of loan under another’s name, causing this other person to be proverbially “stuck with the bill.” Sadly, identity theft seems increasingly common in this day of age. Perhaps the aid of computers has made identity theft a greater temptation …show more content…
Debt, including mortgages, student loans, car payments and so forth, does not represent real dollars, but denotes money to be paid to a lender (“History of the United States dollar,” 2016). Additionally, interest on debt gives rise to inflation, which is another serious challenge to society’s use of both digital and physical money. Although the application of interest on debt is not a new phenomenon, it has become a serious threat to the economy. The national debt of the U.S. federal government is growing rapidly and the interest on the debt expands with it, exacerbating the situation. Currently, the U.S. national debt is into the tens of trillions of dollars; the interest on this debt is in the hundreds of billions of dollars (“U.S. National Debt Clock,” …show more content…
federal government cannot pay off its enormous debt using taxes alone, but must borrow money from the Federal Reserve. The Federal Reserve creates additional money in digital form which does not yet represent real physical money; the electronic money is merely digital code. The greater debt the government owes, the stronger the vacuum sucking away at American tax payers; the only means of filling the void is increasing taxes and/or cutting government spending to pay off the debt. Without the help of modern day technology and computers, this debt would be nearly impossible to calculate (“U.S. National Debt Clock,” 2016). The U.S. dollar is hyper-inflated into electronic debt; however, now that currency has become so digitalized, one doesn’t see trillions of dollars on the streets such as in the hyper inflated paper currency economy of Germany before World War II (“Hyperinflation in the Weimar Republic,”