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Digital money
Digital money can have fundamental implications on the way the international economy works. The introduction of international digital money has happened very quickly, and the economical and social implications are unpredictable. This is because electronic money can move without leaving a trace and it is impossible to control trans-border flow of electronic money.
Some of the biggest legal and ethical questions are:
- Who collects taxes and duties? When should they be collected?
- Will grey economy flourish because of the electronic money?
- Can electronic cash be transmitted directly from one person to another without a third party?
- Who is allowed to make electronic money?
- Will there be many types of electronic money?
- How to change electronic money from one currency to another? Who is authorised to do this?
In summary, the tools that national governments and national central banks have to control the monetary flows will be severely diminished. The legislation is lagging far behind this new technology.
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mtu@cs.hut.fi - 04 DEC 95