Maybe of interest to some. Steve -------- Original Message -------- Subject: ECB wants bigger say in e-commerce Date: Mon, 8 Nov 1999 12:49:31 +0100 From: "Danyal Sattar" <[EMAIL PROTECTED]> Reply-To: <[EMAIL PROTECTED]> To: "'Social Banking List'" <[EMAIL PROTECTED]> FT 8 November 1999 ECB wants bigger say in e-commerce By Deborah Hargreaves in Brussels The European Central Bank has intervened over key proposals to regulate electronic money and is lobbying for a bigger say in financial services regulation. However, an agreement on the proposals is expected to be struck today at a meeting of European finance ministers despite the bank's reservations. The ECB wants a bigger role in monitoring creation of electronic money. Finance ministers due to meet in Brussels today are expected to nod through European Commission plans for supervising credit institutions that issue electronic money. But Wim Duisenberg, ECB president, wrote to the Finnish presidency of the EU last week saying that the bank had some serious concerns about the issue and wanted more discussion. The Commission's proposals lay down a clear definition of electronic money which can be used by consumers to buy goods over the internet. Electronic money is monetary value stored on a chip card, or on a computer memory, which is accepted as a means of payment. The Commission says a stable framework for regulating electronic money would assist the growth of e-commerce and also make it easier for consumers to make small payments in euros in other member countries without having to convert national currencies. "Electronic money is not only the lifeblood of electronic commerce, but also has the potential to replace a sizeable share of cash payments, notably during the period before euro notes and coins are available," said Mario Monti, commissioner responsible for the single market when the proposals were made in July 1998. The proposals would allow issuers of electronic money to offer their services throughout the EU as long as they complied with the rules set up by supervisory bodies in their home country. The Commission's suggestions mean that issuers of electronic money would be subject to reserve requirements imposed by the ECB as part of its monetary policy measures. But if they do not offer other banking services, they would be exempt from certain other banking supervision rules. Mr Duisenberg has said he would like to address the EU's finance ministers on these issues. But Reijo Kempinnen, Finnish spokesman, said the ECB's concerns were not likely to delay the proposals as ministers had agreed politically to go ahead with them. However, they will still have to be discussed by the European parliament, which could call for changes. **********************************************************************
