The impact of e-money on the monetary policy

E-money is fast becoming the currency of a new era, since the use of electronic money has slowly grown over the last decade. E-money is regarded as the second radical transformation of monetary form. E-money not only impact essentially on the electronic commerce, they also influence present monetary system and the implementation of monetary policy directly and indirectly. E-money challenges the traditional monetary policy of the central bank. The central bank should make careful research on e-money. The article analyzes deeply the impact of e-money on independence of monetary policy, monetary instruments and monetary targets. Then it indicates that the central bank should make a careful research on the development of e-money and establish suitable macro-economic management policy.