The cooperation among authorities in implementing the regulatory framework for electronic money : Malaysia as a case study
Abstract
The advance in information technology has encouraged many countries to develop
diverse methods of delivering information and communicating. The enhancement of Information
and Communications Technology (ICT) has made it possible to deliver information and
communication more rapidly and conveniently. Many emerging economies have taken advantage
of ICT, including it in its development agenda.
The development of ICT has had an impact on the provision of retail payment systems
and its instruments. One of the main instruments, electronic money, promises to benefit the users
with all the advantages of traditional notes and coins, and much more. Many countries have
established or are considering the establishment of a regulatory framework of electronic money
with its mass use in view.
This volume examines the regulatory framework of electronic money, which some
emerging economies have already established. It analyses the challenges faced in implementing
laws and regulations for an evolving payment instrument where the regulatory framework may
quickly become obsolete. The continuing development of electronic money with additional
features and functions may invoke legislation leading to cross-regulatory functions among the
authorities.
The thesis is that the success of implementing the regulatory framework for electronic
money will depend on the sound and effective coordination among relevant authorities. The role
of the central bank and its relation to relevant authorities will be closely examined, because the
central bank is often responsible for the development of payment systems, both wholesale and
retail, especially in emerging economies, and plays a key role in its regulation. The use of a
Memorandum of Understanding is proposed to ensure effective coordination and cooperation
among relevant authorities. Malaysia will be used as the case study as the government has been
enthusiastic in adopting electronic money, being involved in its development, implementation and
regulation, which may not always be appropriate. Analysis in this thesis will be based on
information as of 1 September 2004.
The first three chapters of this volume will discuss the enhancement of ICT in emerging
economies and the efforts taken to develop retail payment systems in consonant with ICT.
Evaluation will be made on the relationship between ICT and the need to modernise the retail
payment, which includes developing its regulatory framework. Analysis will then be made
specifically on electronic money, focusing on stored-valued products. The overall development
on stored-valued cards and why the acceptance of this product was initially slow will be
examined, and then the underlying regulatory structure that may affect this is assessed.
The last two chapters will focus on Malaysia. Analysis will be made on the approach
taken in developing electronic money and its regulatory framework. The roles and functions of
the relevant authorities involved will be critically examined, leading to a proposal to execute a
Memorandum of Understanding among the authorities as a mechanism of ensuring the effective
coordination and cooperation between the parties.
Authors
Zahudi, Zalina MuhamedCollections
- Theses [4235]