Economic
sciences/1. Banks and bank systems.
Shegolskaya Marina Nicolaevna
Aleksandrova Anna Nicolaevna
ELECTRONIC MONEY
TURNOVER IN THE WORLD ECONOMY AND
In the
last decade, central banks have been taking particular interest in electronic
money phenomenon. So has the national bank of
Prepayment or regular money remittance to
emittent’s account is a necessary condition to this system. In doing so the
corresponding amount of electronic money, which is actually the electronic
version of the emittent’s obligation for the bearer. Electronic currency
circulation is limited to the rang of traders who are ready to admit this money
as means of payments for goods and services. Now electronic money doesn’t exist
long within these system and in 2-3 cycles (under using certain technologies)
it is exterminated from the system and the money bearer receives regular cash
in a suitable for him form.
As a rule, the definition “electronic
money” as far as European Central Bank determines it is regarded as money value
saved electronically with the help of technological devices and which can be
used to accomplish payments to somebody contrary to emittens with no need to
turn to bank accounts. This money value turns out to be prepaid means in favour
of the bearer. The thing to point out is that quite a number of electronic
items is meant here: software and cards, single- and multi- currency ones,
completely or partially anonymous ets. The way corresponding system are set
also differ to a great extend. In terms of payment electronic money appears to
be quite competitive as compared to regular bank money. The thing to add is
that bank money is used with the help of various means of payment (raiment
order, payment cards ets) while electronic money can operate through a
particular payment instrument which is the bearer of the perschasing capacity
it embodies.
In case the bank is the electronic money
emittent, this money can be regarded as a kind of bank money in terms of its
economic value. Though practical and technical differences are quite evident.
The thongs which matters is that regular bank money is not often used for
purchasing goods and services at low price due to high cost of the transaction.
Nowadays, electronic money manages the problem of micropayments perfectly and
it is the most preferable to use it for small payments because of some specific
risks related to loading and saving money value in great amounts
electronically.
As for the electronic facilities used
nowadays to save money value they are as follow:
-
Card-based electronic money;
-
Software-based electronic-money.
Card-based electronic money is most
widely spread. There are represented as smart-cards or cards with value conserved where there is a bilt-in
chip with the information about the money equivalent as a result of prepayment.
It is a matter of principle that in accordance with European legislation only
prepaid cards of multipurpose usage can belong to electronic money that is the
ones used as payments for companies contrary to emittent. According to the data
reported in 2005 by the Bank of International Settlements about 70 banks in the
world out of 93 save electronic money card-based. In the European according to
European Central Bank general amount of euro rated card-based electronic money
has been increasing 20% yearly and at the beginning 2007 it has amounted in 585
mln.ˆ.
In
The payment organization NSMEP, the
trademark owner and the system operator
is the National Bank of
Software based e-money reflect money value
which is saved in computer with the help of software, for example on hardware.
Soft-based e-money payments are carried out using telecommunication network,
the Internet mostly. According to the European central bank data software-based
e-money have been developing in
According to the data of the 3 quarter 2006
the number of accounts established by their users in PayPal
system reached the point of 123 mln.,
total e- money turnover exceeded 9.3 billion $ in equivalent.
The annual increase of money turnover
makes 37% in the last years. In October 2006 small-scale mode of PayPal system accessible for Ukrainian residents while
paying for goods. But according to the system regulations natural and legal
persons of
Events
in Europe have an undoubted influence on situation in
The conclusions were arrived at one by
one. The activity at e-money emitter was admitted similar to making a deposit,
which gave an emitter aright to act only with the permission and under control
of an authorized institution in change of regulation of credit institutions
activity. Among documents issued in
So nowadays e-money is considered to be money value, which
demands on the past of emitter:
-
to be kept on the electronic device.
-
Is emitted when receiving sum of
money not less than the emitted money value.
-
Is accepted as a means of payments to
somebody contrary to emitters.
One of the regulation in the Guideline 2000/46/CC warms that e-money
emission can influence financial system stability and payment system
functioning. The members of Europe Union have to prohibit persons and
institutions which are non-crediting to emit e-money. ELMI
primary capital has to be no less than 1 mln. euro. The maximum sum of e-money a holder can use for payment
accomplishment is 150 euro.
Since
1996 International Payment Bank supported
by central banks has been publicizing reviews on e-money system
development world wide. The latest one –covering the period of March 2004 –
includes the data from central banks of 95 countries. 37 of those reposted the
availability of e-money systems and specifications in the country. As many as
93 different systems and specifications have been declared to exist. In some
countries e-money is used on the national basis while in others only in certain
regions and cities. It is the data of this very review that proves, that
nowadays the majority of systems are in the
E-money on smart cards enjoys
relative success and progress in
E-money grants new
opportunities for profit in the sphere of retail payments, though its
development should have nothing to do with endangering the stability of the
financial system in general and payment system continuous functioning in
particular. Moreover, profitable gain can be achieved only on conditions that
sufficient e-money protection is introduced so that it appears trustworthy to
the society. Possible risks are to be
determined as clearly as possible in order to make necessary steps for their
timely prevention. Among those the most burning one is the problem of insolvent
emitters. Ignoring this fast can’t but lead to negative consequences, which
will most likely results in less trust
in different types of e-money and even possible loss of trust in money in
general.
The following courses of
action are to be considered for the improvement of electronic money turnover in
Ukraine: 1)The best solution to offer is close partnership between the bank in
charge of financial risk and the system operator dealing with technical risks.
Bank “Tavricheskiy” in