Essential aspects of electronic money in the conditions of digitalization of banking business

Abstract

Introduction. Advances in information technology and digitalization of the banking business have created the basis for the modernization of modern payment systems that operate using a wide range of new financial instruments, a special place among which belongs to electronic money. It is electronic money that is gradually replacing traditional forms of monetary relations, covering an increasing range of relationships between market participants and ensuring the movement of goods and services in each business cycle. Given the importance of money supply as a major factor influencing the dynamics of economic processes, a clear understanding of the nature of electronic money and their place and role in the modern monetary system and economy is especially important in the context of effective monetary policy and financial stability.Purpose. The aim of the study is to substantiate and systematize theoretical views on understanding the nature and basic types of electronic money, taking into account the evolution of monetary relations and the banking system, digitalization of which creates new conditions for market participants in the organization of payments using different types of financial instruments.Results. The nature of electronic money as a legal tender cannot be different from the nature of credit money, which is this tool in the country. Only those instruments of circulation and payment that are issued by the banking system of the country and have all the characteristics to regulate their circulation by the central bank should be considered real money, regardless of their material carrier. Therefore, electronic money should be defined as special electronic ways of storing monetary value in bank accounts using a technical device that can be exploited to make payments.Prospects. Necessary directions of further research of electronic money should be the development of proposals and recommendations for a clearer legislative regulation of differences between real money and their substitutes in order to ensure comprehensive protection of the interests of consumers of financial services.