Some Ambiguities Concerning the Development of Electronic Money

Helmi Hamdi

Financial Theory and Practice, 2007, vol. 31, issue 3, 293-307

Abstract: The aim of this paper is to analyse the economic efficiency of electronic money and to identify different factors hindering its growth. It is argued that electronic money might eventually make paper money obsolete. Nevertheless, prospects for the development of this monetary innovation remain uncertain due to the complexity and ambiguity of electronic money products. In particular, the paper identifies network effects and habit persistence as major factors hindering the adoption and more widespread use of electronic money.

Keywords: e-money; ICT; network externalities; habit persistence. (search for similar items in EconPapers)
JEL-codes: E58 O33 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ipf:finteo:v:31:y:2007:i:3:p:293-307

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