Electronic Currency In China: The Current Implication And Supervision Research

The beginning and development of electronic currency is based on the following factors: the changing of payment system, the development of E-commerce and the advance of information technology. In order to looking for the cheaper and more convenience methods of payments and transactions, with the development of E-commerce and information technology, electronic currency has already made a big progress.As second fundamentally change of monetary form, electronic currency (e-money) are a number of innovations taking place in the area of retail payments. Electronic currency that mostly used in the retail payments, not only impact essentially on the electronic commerce, they also raise a number of policy issues for central bank such as seigniorage revenues, total assets monetary policy and potential risk management. Most developed countries, as G-10, make a point of researching and reviewing the issues. In view of the rapid development of e- money, the PBC should take these issued seriously.Totally, the main influence that electronic currency brings to central bank is reflected on currency issue, money policy and payment systems. All of these influence can be summarized as following: at first, electronic payments methods caused more difficulties to sustain the payments systems; in the second, electronic currency brings new money issue system which will impact these igniorage revenues of central bank; thirdly, electronic currency caused more difficulties to control money supply.In this article, the author briefly introduced the beginning and main type of electronic currencies; from chapter two to chapter four, the author researched the main influence that the electronic currencies bring to the central bank. According to the main function of central bank, the author analyzed the influence that E-money impact on seigniorage revenues, monetary policy and payment system; then in chapter five and chapter six, author combined with the development of electronic currency in China, analyzed the main problems and give the correspondent advice and suggestions.