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The trading took place in the United States through the Chicago Board Options Exchange, but like most securities, there are no physical assets, only electronic credits to accounts.
Central banks do this by printing notes and manufacturing coins, but they can also create money by issuing electronic credits to commercial banks, such as JP Morgan and Citibank.
To wager, bettors still fork over cash to human ticket writers in the sports book, but those workers simply convert the money into electronic credits, which are stored in a triple-encrypted database hosted on backroom servers.
In London, the Oyster card means people do not need paper tickets for journeys; instead, the card stores electronic credits which are deducted at the end of each journey by a reader that can scan a ticket a couple of centimetres away.
Conversely, when faced with an over-heated economy, the central bank where your electronic credits live would simply drop the negative interest rate on your account, causing you to lose nothing by leaving your money safely tucked away.
The days of income tax evasion would be a thing of the past, what with the government knowing precisely what you gathered up in electronic credits over a given year.
Similar(51)
Digital certificate, Electronic credit card intended for on-line business transactions and authentications on the Internet.
This means everything from microfinance and electronic credit, via SMS, to better networking among health care workers and their patients.
Just look at all the e-commerce sites mushrooming across the Web thanks to electronic credit card transactions.
They propose to give every Swiss resident over 18 an electronic credit card to withdraw a specified amount of drugs.
"Monopoly Revolution", the game's latest official iteration, has ditched cash for electronic credit cards topped up at a mini-ATM and updated property prices into the millions.
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