E-Money: Prudential Supervision, Oversight, and User Protection

By Marc C Dobler, Jose M Garrido, Dirk Jan Grolleman, Tanai Khiaonarong, Jan Nolte

December 14, 2021

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Marc C Dobler, Jose M Garrido, Dirk Jan Grolleman, Tanai Khiaonarong, and Jan Nolte. E-Money: Prudential Supervision, Oversight, and User Protection, (USA: International Monetary Fund, 2021) accessed December 21, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This departmental paper discusses the evolving prudential frameworks for nonbank issuers of electronic money. Some jurisdictions take a relatively light-touch approach to regulating electronic money issuers (EMIs). Others have sought to apply more stringent requirements to protect electronic money (e-money) users, as the sector has grown in importance. The paper aims to build on previous IMF staff contributions to the literature and to draw policy conclusions for strengthening e-money regulatory regimes; in particular in jurisdictions where issuers, individually or collectively, have grown to a size to which they are of macro-financial importance (see below). Chapter 2 provides background on the development of e-money, its economic benefits, and potential risks. Chapter 3 discusses prudential supervision of EMIs, followed in Chapter 4 by their oversight from a payments system perspective. Chapter 5 discusses potential additional measures for user protection and contingency arrangements for EMI failure. The last chapter presents policy recommendations for policymakers, especially in those emerging market economies and developing countries wherein EMIs have reached a scale at which they could have a significant economic impact if they were to fail.

Subject: Bank deposits, Deposit insurance, Digital currencies, Financial crises, Financial markets, Financial regulation and supervision, Financial services, Mobile banking, Money, Operational risk, Payment systems, Technology

Keywords: Africa, Bank deposits, Caribbean, Debit Cards, Deposit Banking, Deposit insurance, Digital currencies, Digital Currency, E-money, E-Money issuance, E-money service, E-Money system, Financial regulation, IMF Library, IMF Monetary, Mobile banking, North America, Operational risk, Payment systems, Payment Systems, Sub-Saharan Africa, West Africa

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No 2021/027
Stock No:

EMPSOUPEA
ISBN:

9781513593401
ISSN:

2616-5333

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