Emerging electronic money products may require regulatory adjustment or intervention which will arise from: the need to limit the systemic and other risks which may threaten the stability of, and confidence in, the National Payment System; the need to provide 1  BIS Review 109/1999  consumers with adequate protection from unfair practices, fraud and financial loss; the need to ensure the central bank’s ability to conduct monetary policy; and the need to assist law enforcement authorities in the prevention of criminal activity.
While these products are still being developed, the Bank is reluctant to impose regulation that could hamper the introduction of innovative and promising technologies. At this stage, the Bank is of the view that it should rather concentrate on understanding the emerging technologies and the issues they represent.