Technically, it is conceivable that banks (or even non–banks) that are based in offshore centres can issue e–money and distribute it via the Internet all over the world. Therefore, many economists see offshore e–money issuers as a severe threat to the ability of central banks to conduct monetary policy. In this paper, it is argued that off–shore issuers will denominate their e–money products in terms of existing currencies. Therefore they will be affected by monetary policy measures in the same way as on–shore banks.
- currency competition
Available at: http://works.bepress.com/malte_krueger/3/