Digital contracts, the spread of digital currency, advantages, innovation and problems stemming from them

• Author: Andrea Gjoka
• Pages: 147-160

European Journal of Economics, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

Vol. 4 No. 1

January, 2020

ISSN 2519-1284

Acces online at www.iipccl.org

147

Digital contracts, the spread of digital currency, advantages, innovation and

problems stemming from them

Andrea Gjoka

Abstract

This article aims to provide an overview of the creation, development and evolution that

banking and the banking system is going through these days. It addresses the concept of

digital contracts, their creation and their approach to various banks and banking systems.

A erwards, the article focuses on digital banking and digital activity of today's banks, the

application of digital contracts, their content, and digital and online content. This article

considers the establishment and development of various digital currencies, and recently,

the launch of a new digital currency from Facebook. Looking at the currency expected to be

launched by Facebook, various studies show that such currency is increasingly taking ground

in the area of economic transactions, replacing thus successfully the traditional currency.

Keywords: digital contracts, digital banking, digital coins, Facebook, Libra.

Introduction

A digital contract otherwise known as “e-contract’ is an agreement created and

"signed" in electronic form, without the use of any physical material (physical

contract).

The “e-contract is any kind of a contract created during the electronic trading through

the interaction of two or more individuals using electronic means, such as e-mail, the

interaction of the individual with an online agent, as well as a computer program,

or the interaction of at least two of the electronic agents, which are programmed to

recognize the existence of a contract.1 The Uniform Computer Transactions Information

Act provides rules regarding formation, governance and basic conditions of a digital

contract. The Computer Information Transactions Act (UCITA) is a proposed state

contract law developed to regulate transactions in computer information products

such as computer so ware, internet database, so ware or e-books access contracts.2

Its goal is to unify and provide rules that apply to information technology transactions

that the Uniform Trade code makes for the sale of goods.

UCITA puts the information age industry on a level with goods retailers by codifying

legal rules applicable to contracts for their products. UCITA has been extremely

controversial and has been rejected by a number of consumer groups and by the

General Lawyer of many states. Critics view the act as anti-consumer and pro-

business, claiming its protections mostly protect the so ware industry. In response

to the criticism, NCCUSL amended UCITA 38 times, incorporating more protection

1 E-Contract Law and Legal Defi nition (). Retrieved from https://defi nitions.uslegal.com/e/e-contract/

2 Uniform Computer Information Transactions Act Law and Legal Defi nition. Retrieved from https://

defi nitions. uslegal.com/ u/uniform-computer-information-transactions-act/