E-money, Retail Payment Systems and Countries in Transition

This paper analyzes general public policy issues, and opportunities and threats for Countries in Transition (CIT) in particular, brought about by the electronic money and other electronic retail payments systems developments. The strengths and weaknesses of CIT financial systems, with regard to the new payment technologies, are also assessed. The study looks at retail payment systems and importance of cash in CIT, and identifies general business and public policy implications of e-money. It is argued that the new payment instruments, and e-money in particular, can contribute to cash substitution and development of more efficient payment and banking systems practice in CIT, and inspire competition among financial intermediaries.