Money supply
control
Monetary Policy Finally we would like to mention the issues on monetary policy related to banking system.
Money supply
control Regarding systems such as expansion of credit card system and internet banking, there should be no significant change for monetary policy. In the case of smart card and digital cash, central banks can capture its money supply because these currency are based on the real money. However, if a private company can issue private currency, it will affect monetary policy. Central banks will not be able to grasp the total amount of money supply.
Insurance
policy Currently, the FDIC (Federal Deposit Insurance Corporation) insures the amount of money in normal type accounts at Mark Twain Bank, but does not insure the money in E-cash Mint accounts. Therefore, there should be discussion about how FDIC or other insurance corpo ration deal with this problem. There are also other problems related to who will guarantee the currency which is privately issued when the issuing company has gone bankrupt.
