The Influence Of Electronic Money On The Central Bank

It has been an irreversible trend throughout the world that electronic currency ("e-currency" for short) is taking place of traditional bank notes and coins as a major tool of transaction and payment. Apart from the common characteristics of currency, e-currency enjoys some specific features during the process from issuing to circulation. It is these specific features that make it possible for e-currency to exert influence upon the issuing rights of central bank, the implementation of monetary policy, and the monetary policy of central bank to a very different extent. Though it is still at its initial stage, China's e-currency is in rapid development; therefore the problems such as how to facilitate the development of e-currency and how to prevent or eliminate the side effects deserve great attention of the central bank. In a word, it is of great theoretical and practical importance to focus on the research on this topic at current stage.As the domestic research on e-currency is still at the beginning, the pertinent books or references, especially the documents or articles incorporating the e-currency with the central banking, cannot be found as much as possible. What's more, most of them are confined to a certain aspect such as the coining tax and the monetary policy, lacking the overall introduction and explanation of the impacts from e-currency.The thesis, based on e-currency, the monetary policy of the central bank and monetary monitoring, explains these relevant problems in a separated and united way, including the impact of e-currency on central bank. Then it puts forward some strategies suitable for the central bank at present. The thesis therefore breaks down into five parts as followed:Part one is the introduction of the definition, characteristics, types of e-currency and its current development in China.Part two, starting with the influence of e-currency upon the definition of traditional currency and the monetary multiplier, analyzes the impact of e-currencyon the tools, medium and ultimate objectives of monetary policy laid down by the central bank.Part three elaborates on the problems arisen from the e-currency, which are facing the central bank's monitoring, and highlights the circulation process and its own monitoring out of its features.Based on several previous parts, the fourth part focuses on the monitoring of the issuer and circulation of e-currency conducted by the central bank.Part five, the ending part, puts forward some specific strategies useful and suitable for China in the light of the international practices and the trend of e-currency after the introduction of the current development and the monitoring reality of China's e-currency.