I know some have purposed online voting in federal elections in Canada. Elections Canada has even toyed with the idea.
I for one never want to see online voting for the simple reason, voter fraud. Even with extra security measures I can see the system possibly being hacked to rig an election. I don't want voting machines either like they have in the US which has been rife with problems. Some without a paper trail.
I like the paper ballot the best. Is it perfect probably not but at least there is a paper trail. At least having to get off your behind and go to polling station is a real motivator cause you have make an effort.
Brian Lilley has a good summation on online voting.