The Internet as the most recent development in communication technology might dramatically reduce transaction costs and thereby lead to the emergence of a nearly perfect market. This would have drastic implications for labor markets and the social security system. In the first part of the paper,...

In this paper we examine regulatory issues relating to electronic money. The discussion proceeds along three main lines. First, the focus of attention on the potential risks to the financial system is typically on the systemic risk arising from the payments system. Since issuers of electronic...