Cashless banking in Nigeria and its implications

Olajide, Victor C. (2012): Cashless banking in Nigeria and its implications.

Abstract

Electronic money has ushered in the cashless banking framework across different countries of the world and this is made possible by the advances in information technology and invention that began in Japan and later the West. However this new introduction into the various economies of the world is not without reaction both favorable and unfavorable. This paper seeks to point out the implications, in a developing economy like Nigeria, of a cashless banking which still permits some cash in the economy that is home to both the formal and informal sector. Theoretical findings supports the view of some economists concerning the need for regulatory agencies to be very wary the possibly retarding effect of the introduction of such a sophisticated payment system, particularly in developing economies like Nigeria, with the coexistence of the formal and informal sectors, that may not be able to muster the wherewithal to bear the burden of electronic payments and hence the cashless banking paradigm.

• Item Type: MPRA Paper
• Language: English
• Keywords: Electronic money; Cashless Banking; demand and time deposits
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General

References

Alfaro L, S Kalemli-Ozcan and S Sayek, (2009) FDI, productivity and financial development. Journal compilation © 2009 Blackwell Publishing Ltd, 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.

Autrement, (2007) "Une Histoire de l’Argent: des origines à nos jours" - www.autrement.com/ouvrages.php?ouv=2746710306 Berg H, J Hann and J Strum, (2006) Does money matter in the ECB strategy? Working paper

Boianovsky M and H Trautwein, (2004) Wicksell after Woodford. Paper presented at the History of Economics Society meeting at Toronto in June 2004.

Boughton and Wicker, (1975) The principles of monetary economics. Richard Irwin inc, Homewood, Illinois.

Brown, (1997) “Leaked National Bank memo confirms pilot version of Mondex broken”, Computerworld News Wire. Sourced from: <http://insight.mcmaster.ca/org/efc/pages/media/nz-computerworld.15sep97.html>

CBN, (2011) Questions and answers on the CBN policy on cash withdrawal /lodgment limit. Sourcedfrom;http://www.cenbank.org/Out/2011/pressrelease/gvd/Revised%20QnA%20on%20CBN%20POLICY%20ON%20CASH%20WITHDRAWAL%20LIMIT.pdf

Crespo N., I. Proneca and M P Fontoura, (2007) FDI spillovers at regional level; evidence from Portugal, WP 028/2007/DE/CISEP, School of Economics and Management, Technical University of Lisbon.

Financial action task force, (2010) Money laundering using new payments methods. Sourced from: www.fatf-gafi.org/dataoecd/4/56/46705859.pdf

Fu, (2007) Foreign direct investment, absorptive capacity and regional innovation capabilities; evidence from China. Global forum on international investment. OECD.

Godschalk and Krueger, (2000) Why e-money still fails; chances of e-money within a competitive payment instrument market. Paper presented for the third Berlin internet economics workshop, Berlin.

Good, (1997) Electronic money. Working paper 16, Federal Reserve Bank of Cleveland.

Goodfriend and King, (1997) The new neoclassical synthesis and the role of monetary policy, NBER macroeconomics annual, MIT press.

Griffith, (2004) Electronic money and monetary policy. Southwestern economic proceesings. Sourced from: http://www.thomaspalley.com/docs/articles/macro_theory/emoney_revolution.pdf

Nafziger, (2006) Economic development, fourth edition. Cambridge university press, The Edinburgh Building, Cambridge cb2 2ru,U K

National Drug intelligence centre, (2008) Money laundering in digital currencies. U.S department of Justice.

Palley, (2001) The e-money revolution; challenges and implications for monetary policy. Sourced from: http://www.thomaspalley.com/docs/articles/macro_theory/emoney_revolution.pdf

Rogers, (2004) Doing without money; a critical assessment of Woodford’s analysis. Working paper sourced from www.economics.adelaide.edu.au/research/papers/doc/wp2004-05.pdf

Wicksell, K (1898) Interest and Prices, (tr.Richard Kahn, London, Macmillan, for the Royal Economic Society, 1936).

Woda, (2006) Money laundering techniques with electronic payments systems. Information and security journal, vol 18, pp 27-47

Woodford, M. (1997) Doing without money: Controlling inflation in a post- monetary world. Working Paper-Annual Meeting of the Society for Economic Dynamics and Control