What is electronic money?
Q: What is electronic money?
A: Electronic money is money stored electronically and spent by using a technical device, such as a smart card. It may be secured by a PIN code if it is stored on a card.
Q: Where is electronic money commonly used?
A: Electronic money is commonly used to pay for train tickets in Japan, and also to pay for goods at convenience stores in Japan.
Q: What are some examples of electronic money cards in Japan?
A: Examples of electronic money cards in Japan include JR East’s prepaid train ticket (Suica) and JR West’s IC Operating card (ICOCA). These are plastic cards with built-in IC chips.
Q: Is electronic money backed by real currency?
A: Yes, electronic money is always backed by real currency. For this reason, cryptocurrencies cannot be used as electronic money.
Q: What does the European Union Directive 2009/110/EC say about e-money?
A: The Directive states that authorized and regulated institutions can issue e-money which serves as a "digital alternative to cash". It also describes e-money as a "technically neutral ...electronic surrogate for coins and banknotes".
Q: When was Suica introduced in Japan?
A: Suica was originally introduced in 2001.
Q: Who became the first company authorized to issue e-money tokens on blockchains?
A: In June of 2019, the Icelandic company Monerium became the first company authorized to issue e-money tokens on blockchains.
