Promoting full-fledged electronic money in South Asia: evidence from Bangladesh

  • 288 Views
  • 15 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The study aims to develop several models for instigating full-fledged electronic money and to study prospects and challenges in the digitization process in the context of South Asian countries such as Bangladesh. Besides, the economic effect of full digitization of currency was analyzed considering its impact on vital economic indicators. Regression analysis, factor analysis and structural equation modeling were used to analyze data. The study suggests some models within the existing financial framework to support the process of instigating and implementing full-fledged electronic money in Bangladesh. The research defines a full-fledged e-money mechanism as a consumption-driven, production-oriented, creditworthy, cost-effective, prompt, technologically based inclusive payment system, as a prospect of full-fledged e-money. Besides, the requirement of an advanced technological infrastructure having secured and user-friendly software with high-speed internet services is identified as a major challenge to full-fledged e-money. The study also found out that a revolutionary change in GDP growth rate and inflation rate will occur through this mechanism.

view full abstract hide full abstract
    • Figure 1. Operational procedure
    • Figure 2. Secured and user-friendly software
    • Figure 3. Cyber-security model
    • Table A1. Prospects for instigating full-fledged e-money in Bangladesh
    • Table A2. Challenges of instigating full-fledged e-money in Bangladesh
    • Table A3. Statistical output for the prospects
    • Table A4. Statistical output for the challenges