How can a central bank follow up the new developments in e-banking and e-payments? What strategy to follow and how implement it? Look at some suggestions here.

1. Electronic banking:
Strategy, monetary policy
and the central bank(s)
H. VAN DE VYVER
CELUFO SNC, BRUSSELS

2. Regulatory Issues and Possible Policy Responses to the development
of E-money
◦ Fundamental monetary policy concerns
◦ Efficient functioning of payment systems and confidence in payment
instruments
◦ Protection of customers and merchants
◦ Stability of financial markets
◦ Protection against criminal abuse
Source: Issues in Informing Science and Information Technology Volume 6, 2009
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 2
Strategy, monetary policy and the central bank(s)

3. The idea that digital money is commodity based may be overly optimistic.
The possibility of fraud could lead the central bank to want to limit the
changes to M1 and prevent the growth of electronic money. The following
measures could be taken:
• Limit the proliferation of digital money products to prevent the replacement of central
bank currency
• Issue digital money products and treat digital money balances in the same way as they do
central bank currency
• Apply high reserve requirements on digital money balances
• Absorb the excess liquidity created by appropriate monetary operations
Source: Issues in Informing Science and Information Technology Volume 6, 2009
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 3
Strategy, monetary policy and the central bank(s)

4. Strategy, monetary policy and the central bank(s)
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 4
E-money associaction
◦ International:
◦ Website:http://www.e-ma.org
◦ Blog, Publications
◦ Europe:
◦ Website: http://ec.europa.eu/internal_market/payments/emoney/index_en.htm
◦ Directive about e-money institutions
Other institutions
• FATF
• recommendations
• The Wolfsberg group
• standards

5. European central bank
◦ ECB, website: http://www.ecb.europa.eu/pub/pdf/scplps/ecblwp7.pdf
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Strategy, monetary policy and the central bank(s)

6. Strategy, monetary policy and the central bank(s)
Russia
◦ Website: http://npaed.ru
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7. Strategy, monetary policy and the central bank(s)
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 7
The new E-Money Directive (2009/110/EC) (EMD) aims to:
◦ enable new, innovative and secure electronic money services to be designed
◦ provide market access to new companies
◦ foster real and effective competition between all market participants.

8. Strategy, monetary policy and the central bank(s)
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The second Electronic Money Directive (2EMD), which aims to encourage the growth of the
electronic money market, was implemented in the UK on 30 April 2011 through the Electronic
Money Regulations 2011.

9. Strategy, monetary policy and the central bank(s)
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 9
Source: ECB, Legal working paper

10. Strategy, monetary policy and the central bank(s)
E-BANKING/ H. VAN DE VYVER,CELUFO SNC 10
Source: ECB, Legal working paper

11. Strategy, monetary policy and the central bank(s)
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Source: ECB, Legal working paper

12. Strategy, monetary policy and the central bank(s)
http://www.ecb.europa.eu/press/key/date/2014/html/sp141017_2.e
n.html
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13. Electronic banking: Strategy, monetary policy
and the central bank(s)
13E-banking / H. Van de Vyver, Celufo Snc