E-Money

Essay # 23576

Business > Finance, Investment and Banking
Computer and Technology
Public Administration

E-Money

This paper discusses the issues around the development of E-money (also called electronic money, digital money or digital cash), the economic base and monetary policy.

2,825 words () | 21 sources | APA | 2002 United States

Paper Summary:

This paper defines E-money as spendable balances represented by digits on a bank's balance sheet. The paper discusses that E-money can not become standard currency until the public understands the concept and feels comfortable in using the technology and until the emergence of cryptography, the ability to make the transactions secure and unbreakable. The author believes that financial markets will have to develop new internal regulations, banks will have to adjust their style of business and the federal government will have to rethink the status of its monetary policy to keep control of the monetary base.

Table of Content
Abstract
Why Did Money Develop?
New Advances in Payment Systems
Why the Advances to get rid of Fiat Currency?
What is E- Money?
E-money and Government Regulation
E-money and Government Taxation
Conclusion

From the Paper:

"In the last thirty to forty years, major advances in payment systems and abilities have revolutionized the way most Americans and Europeans pay for goods and services. In the early 1950's, a new type of card emerged that enabled people to pay for goods and services without actually transferring any type of fiat currency or commodity, the Diners Club payment card. It was the first card that enabled individuals to pay for their lunch or dinner just by signing a piece of paper."