The Research On Development Of Electronic Currency And Its Supervision Of The Central Bank

With the increasing demanding on the payment and rapid development of information technology, electronic currency is widely applied in countries and regions around the world, which can both meets people’s demands on petty cash payments and increases turnover efficiency of the social capital. Electronic currency has become a backbone element in the payment and settlement system in the process of economic development. However, the development of the electronic currency exert a strong influence on the function of traditional currency and monetary policy implemented by the central bank, meanwhile, potential risks brought by it raise a higher demand on the supervision of the central bank.We have just began to make Laws and regulations on the electronic currency supervision which are still imperfect. Payment Regulations For Non-financial Institution which was officially implemented by the Central Bank of China on September2010is just a simple rule for the development and supervision of electronic currency. Besides, Documents, rules and laws for electronic currency regulation are rear and outdated.Based on the latest news, papers, laws and regulations, this paper mainly defines the property of the electronic currency, sorting the electronic currency, and analyzing its influence on the traditional currency in lie with its developing trend, discussing its influence on the money supply and demanding as well as on the validity and independence of the monetary policy, analyzing the risk of money laundering brought by the development of the electronic currency, and offering some advices on the regulation of the electronic currency based on the development of domestic and the advanced experience of developed countries and regions. The first chapter summarized the basis of choosing the theme of this paper, collected documents at home and abroad, and generalized basic thoughts of this paper.The second chapter defined the electronic currency, summarized its types and features, and discussed its influence on the traditional money.The third chapter first analyzed the influence of the electronic currency casts on the independence of the monetary policy enacted by the central bank of China, then constructed the supply and demand of the currency under the influence of the electronic currency by a traditional model of money supply and demand. At the end of this chapter it evaluated the combined influence of the electronic currency on the monetary policy based on the influences of the electronic currency casts on the monetary policy tool, target and transmission mechanism.The fourth chapter analyzed risks brought by the electronic currency, such as credit risk, security risk, operation risk, liquidity risk and law risk. In the discussion of the law risk, this chapter mainly focused on the influence of the electronic currency on money laundering because anti-money laundering is one of the major tasks of the central bank, at last, this chapter discusses how to prevent these risks.In the fifth chapter, we collected and translated the latest documents and literatures on the development of the electronic currency and its application in western countries, summarized up their experiences on the regulation and supervision of the electronic currency in the hope of providing some advices in how to regulate electronic currency in China.The sixth chapter analyzed and generalized the problems lies in electronic currency management and provided some advices for the regulators.