What does not disappear is the risk of an initial period of excessive expansion of expenditure and debt after joining a monetary union that guarantees a regime of low inflation and low interest rates. We have felt the consequences of this hazardous development. The economy, however, has automatic correcting mechanisms as economic agents soon have to begin restraining their indebtedness and adjusting their spending.
However, the advent of E-Money raises a number of challenges for central banks: Will e-money always be variants of the national currency of a country? Can central banks account for e-money in circulation? Will they still have the monopoly of money issuance and therefore dictate monetary policies? And what about the impact on regulation and anti-money laundering?