What is the major drawback of eCash?

To mitigate these risks, users can implement security measures such as setting an account limit. By placing a cap on the amount of e-cash that can be held or transacted within a given timeframe, users can limit their potential exposure to loss in the event of a security breach.

E-cash presents a unique advantage over traditional credit cards in that it cannot be physically lost or stolen. Unlike a plastic card that can easily slip out of your wallet or be snatched away, e-cash exists solely in digital form, making it inherently more secure against physical loss.

However, despite this advantage, e-cash is not without its downsides. One significant concern revolves around security risks. As with any digital asset, e-cash is vulnerable to cyber threats, including hacking and phishing attempts, which can compromise user accounts and funds.

Another disadvantage of e-cash is its limited acceptance. While its adoption is growing, e-cash is still not universally accepted as a form of payment. This can pose a challenge for users who rely on it for transactions, as they may encounter merchants or service providers who do not accept e-cash as a valid payment method.

Currency issues can also complicate the use of e-cash. Since e-cash is typically tied to a specific digital currency, its value can fluctuate significantly based on market conditions. This volatility can make it difficult for users to predict the value of their e-cash holdings, adding an element of uncertainty to their financial transactions.