The Electronic Currency Impact on Financial Market and the Operation of Financial Policy

Continuous development of the electronic currency, necessarily will change the economic construction and the economic order. Analyzing from the money supply angle, we think that the spread of electronic currency will influence the credit creation and make the money multiplier rising. Analyzing from the money demand angle, we conclude that the spread of electronic currency will reduce money demand. Accordingly, the target and the operation of central bank's financial policy need adjust.