It's interesting but actually unsurprising that they're looking at the cash cards before they are the Internet money exchange stuff. They haven't spotted exactly how much of a difference the latter can make - the former will act about like cash at "worst" from their viewpoint. -Allen
Reuters New Media
_ Friday July 5 12:27 PM EDT _
G10 mulls effect of E-cash on policy and fraud
ZURICH - The threat of fraud, money laundering and tax evasion from new electronic payment systems will be high on the agenda of Monday's monthly meeting of Group of 10 (G10) central bankers at the Bank for International Settlements (BIS).
The central bank governors will be briefed on two reports that examine the implication of emerging forms of payment -- electronic purses, e-cash, cybercash -- on monetary policy and whether it will open the way to widespread fraud.
With big banks already waging a fierce battle to set a new global standard for electronic cash, central bankers want to stay on top of a technology that is not only likely to destabilize monetary aggregates, but also holds out the promise a cashless society and threatens the monopoly of central banks to issue notes and coins.
William McDonough, president of the New York Federal Reserve and chairman of the G10 Committee on Payment and Settlement Systems, will brief his colleagues on electronic money and fraud, money laundering, counterfeiting, tax and legal issues.
The other report, to be presented by Charles Freedman, Bank of Canada deputy governor, explores the issue of electronic money and monetary policy.
Whether G10 governors take action or merely note the reports and let them fade into the BIS archives is uncertain. An initial decision will probably be taken at the meeting.
The two reports will focus mainly on the implications of prepaid cards rather than so-called network money, cybercash or digital cash as the latter is less developed.
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The concept of electronic money covers a wide range of new payment methods ranging from multi-purpose, rechargeable prepaid cards, such as Mondex, to forms of digital cash or cybermoney that enable shoppers to pay for goods over the Internet.
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