E money .

In other words , the redeemability requirement should not be waived for any issuer of electronic money , however small .

Total e money

73 2 Electronic money At present , electronic money is not a widespread phenomenon .

to issue electronic money .

Issuing electronic money .

Of which , e money

Software based e money .

ELMIs must , therefore , be legally obliged to redeem e money for central bank money at par value at the request of the holder of the e money .

Of which , e money E1 E2

9.1.1 e Hardware based e money

Of which , e money E3 E4

9.1.1 x Hardware based e money

9.1.2 x Software based e money

9.1.2 e Software based e money

9.1.2 x Software based e money E5

This paragraph shall also apply where an electronic money institution carries out activities other than issuing electronic money .

Two types of e money can be identified based on the technical device where they are stored ( 2 ) Hardware based e money ( e.g. prepaid cards ) .

a legal requirement must be imposed that electronic money is redeemable at par , implying that issuers must be in a position to convert electronic money into central bank money on request of the holder of the electronic money 3

9.1.1 x Hardware based e money

This general definition of e money would imply that traditional bank accounts as well as payment accounts could be considered as e money .

The following two BSIs on the liabilities side of the balance sheet of the MFI sector are used for the statistical reporting overnight deposits of which e money hardware based e money , overnight deposits of which e money software based e money .

Fees or commissions payable on redemption of electronic money could only be accepted if they did not exceed a reasonable and fair estimate of the costs for the relevant electronic money issuer related to the redemption .

Outstanding electronic money represented only

and 5 ) repeal the Electronic Money Directive .

EN Article 4 Prohibition to issue e money Member States shall prohibit from issuing electronic money natural or legal persons who are not ( 1 ) ( 2 ) ( 3 ) an electronic money institution as defined in Article 2 ( 1 )

Electronic money In 1997 the EMI carried out a further study of the impact on EU economies of the emergence of electronic money . It took

Providers wishing to issue electronic money therefore currently have two options to apply for a licence as an electronic money institution under the Electronic Money Directive , or to apply for a licence as a full blown credit institution .

Credit institutions , regulated under the Capital Requirements Directive , can also issue electronic money within the framework of the Electronic Money Directive .

Both options are expected to have a positive impact on the uptake of the electronic money market in terms of electronic money in circulation ( a potential increase up to EUR 10 billion ) and the number of institutions ( up to 120 electronic money institutions ) .

For statistical purposes , e money refers to an electronic store of prepaid monetary value on a technical device , such as a prepaid card , that may be widely used for making payments to entities other than the issuer without necessarily involving bank accounts in the transaction .

Balances representing prepaid amounts in the context of e money , either in the form of hardware based e money ( e.g. prepaid cards ) or software based e money , issued by central government , are included under this item .

issuers of electronic money must be subject to prudential supervision

It is only by ensuring that the holder of e money can reconvert the value of e money into banknotes or scriptural money that confidence in e money as an effective and reliable substitute for coins and banknotes will be preserved .

Countries not participating in the euro area must submit annual convergence programmes , in accordance with the Stability and Growth Pact .

6 . issuers of electronic money must be legally obliged to redeem electronic money against central bank money at par at the request of the holder of the electronic money

The money issuing sector comprises MFIs resident in the euro area .

4 ) apply a specific prudential regime for electronic money institutions

The legal nature of ELMIs To assess the implications of the proposed directive , it is important first to understand the legal nature of ELMIs .

If compliance is not reached within six months from deadline for implementation of the Directive , the electronic money institutions concerned shall be prohibited from issuing electronic money .

EN In addition , the Review Report showed that high capital requirements , as well as certain restrictions ( e.g. on the scope of activities of electronic money institutions ) and requirements imposed by the Electronic Money Directive , have hindered the development of the electronic money market .

Method D where electronic money represents the highest amount between outstanding electronic money and payment volume , the own funds of electronic money institutions shall amount at least to the sum of the following elements ( a ) ( b ) ( c ) ( d ) ( e ) 4 .

Liabilities of the money issuing sector and central government liabilities with a monetary character held by the money holding sector .

From this perspective , the ECB would like to suggest the introduction of the concept that electronic money represents a claim on the issuer of electronic money , which claim is redeemable in either legal tender or scriptural money , that is incorporated in an electronic medium , and accepted as an instrument of payment by ( non affiliated ) undertakings other than the issuing institution .

First , the ECB is of the view that apart from the right of ELMIs and credit institution to issue e money , the distinction between ELMIs and payment institutions is unclear this makes the assessment of risks and related safeguards a challenging task from a supervisory perspective .