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Is money going digital? An alternative perspective on the current hype

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  • Daniel Gersten Reiss

    (Central Bank of Brazil, Department of Banking Operations and Payments System’s Research Division)

Abstract

Current financial discourse suggests the imminence of a cashless society, a concept that arose from the global popularization of digital financial services and the development of technologies with the potential for application in financial markets. However, claims about the impending obsolescence of paper money are neither disruptive nor a novelty. Instead, this paper argues that the conversion of money from paper to bits has been a gradual, adaptive process, and that money is already digital. Moreover, in this paper we propose that the statuses of electronic money (e-money) and banknotes have switched in the view of monetary authorities.

Suggested Citation

  • Daniel Gersten Reiss, 2018. "Is money going digital? An alternative perspective on the current hype," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-6, December.
    • Handle: RePEc:spr:fininn:v:4:y:2018:i:1:d:10.1186_s40854-018-0097-x
    DOI: 10.1186/s40854-018-0097-x
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    References listed on IDEAS

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    1. Santomero, Anthony M & Seater, John J, 1996. "Alternative Monies and the Demand for Media of Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 942-960, November.
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    3. Ignacio Mas & Olga Morawczynski, 2009. "Designing Mobile Money Services Lessons from M-PESA," Innovations: Technology, Governance, Globalization, MIT Press, vol. 4(2), pages 77-91, April.
    4. Greenfield, Robert L & Yeager, Leland B, 1986. "Competitive Payments Systems: Comment," American Economic Review, American Economic Association, vol. 76(4), pages 848-849, September.
    5. White, Lawrence H, 1986. "Competitive Payments Systems: Reply," American Economic Review, American Economic Association, vol. 76(4), pages 850-853, September.
    6. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    7. repec:zbw:bofrdp:1998_021 is not listed on IDEAS
    8. White, Lawrence H, 1984. "Competitive Payments Systems and the Unit of Account," American Economic Review, American Economic Association, vol. 74(4), pages 699-712, September.
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    Cited by:

    1. Ajimon George & Prajod Sunny, 2021. "Developing a Research Model for Mobile Wallet Adoption and Usage," IIM Kozhikode Society & Management Review, , vol. 10(1), pages 82-98, January.
    2. Muhammad Z. Mumtaz & Zachary A. Smith, 2020. "Empirical examination of the role of fintech in monetary policy," Pacific Economic Review, Wiley Blackwell, vol. 25(5), pages 620-640, December.

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    More about this item

    Keywords

    Digital money; Digital currency; E-money; Digital financial services;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L8 - Industrial Organization - - Industry Studies: Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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