Abstract: This invention provides a system and method for electronic value payment in which a practical and secure means for auditing and accounting electronic value is achieved. The invention offers a means for identifying “blocks” of electronic value with single electronic tags. This facility makes the invention compact to implement and offers a practical way for tagging in circumstances where large amounts of electronic value, such as required for electronic representations of money, preclude the use of individual unit tagging. The invention combines block tagging with tag flow control mechanisms which allows block auditing and detection of counterfeit value. Independent tag (10) and value (12) representations make it possible to operationally change the tag associated with a block of value. The electronic value representations of the invention are readily applied to existing value exchange systems.