The role of electronic money in the payment system: evidence from middle-income economies

Abstract

Electronic money is one of the evolutionary stages of the payment system. In the low and middle-growth countries the role of both the centralized electronic and the decentralized cryptocurrency system is not significant. Moreover it is associated with risk. The purpose of this paper is to describe the electronic money genesis, which include the eight stages of its technological evolution; to reveal the final formation of the technical-and-technological concept; to prove the reinforcement of the financial content of electronic money in the legislation and delegating some functions in the payment systems to new technologies. The authors formulate the proposals on the improvement of the electronic money system using the block-chain technology. The researchers also characterize the requirements to cryptocurrencies as the types of electronic money and forecast the number, as well as the amount of transactions processed with electronic money in the middle and low growth countries. The authors use different mathematic methods such as Panel data, Gompertz and Pearl-Reed functions and others