This paper defines E-money as spendable balances represented by digits on a bank's balance sheet. The paper discusses that
E-money can not become standard currency until the public understands the concept and feels comfortable in using the technology and until the emergence of
cryptography, the ability to make the transactions secure and unbreakable. The author believes that financial markets will have to develop new internal regulations, banks will have to adjust their style of business and the federal government will have to rethink the status of its monetary policy to keep control of the monetary base. Table of Content Abstract Why Did Money Develop? New Advances in Payment Systems Why the Advances to get rid of Fiat Currency? What is E- Money? E-money and Government
regulation E-money and Government Taxation Conclusion