[PDF]Economic features of using electronic money in accounting

Academic Journal of Digital Economics and Stability


ACADEMIC
= JOURNAL Volume 31, July-2023
ISSN 2697-2212 Available Online: https://economics.academicjournal.io


Economic features of using electronic money in accounting


Khaitov O.N.!


Boynazarova N.B.”


Abstract


Today, the peculiarities of the use of electronic money in accounting are an innovative means of
technology development and the possibility of their improvement to the modern implementation
mechanism of enterprises and organizations. The research focuses on the development of
electronic money and tools for its implementation. In addition, the question of the effectiveness
of the functioning of the electronic money market and the possibility of conducting transactions
with it is gaining importance. The theses describe modern perspectives and problems of using


electronic money in accounting.


Keywords: accounting, electronic money, transactions, innovative technologies.


‘Head of the Department of “Business Management” of the Kattakorgan branch of Samarkand State University


named after Sharof Rashidov


Student of the Faculty of Business Administration and Information Technology of the Kattakorgan branch of
Samarkand State University named after Sharof Rashidov


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Research problems. The key issue of the study is the possibility of improving the modern
mechanism of using electronic money in accounting. In addition, with the help of high-quality
innovative tools, it is worth investigating how electronic money changes accounting principles in
the modern policy of conducting corporate activities by enterprises.

Results

Electronic money is a tool used to carry out transactions using an electronic system as a
non-cash transaction. These transactions usually require the assistance of special tools using
computer networks as well as Internet networks such as digital price storage systems and the
Internet. Electronic money has advantages, including ease of use, from advantages to ease of use
of electronic money in buying and selling transactions. Mankiv noted in his book that credit
cards can affect the demand for money. This is consistent with the research conducted by
Radchenko, where payment by cards can reduce the demand for the currency that the population
has. In addition, the use of electronic money as an alternative to cashless payment instruments in
several countries shows

Electronic money is increasingly used for payments between economic entities along
with ordinary cash. At the same time, the qualitative advantage of electronic money is its ability
to implement two requirements of settlement processes - the immediacy of settlement and the
absence of regional restrictions in their implementation. The rapid development of electronic
commerce, which is the result of the implementation of developments in information and
communication technologies, plays a decisive role in the spread of electronic money payments.
This type of commerce is a way of conducting business activities in which all (or most) business
processes/operations (sales, advertising, marketing, warranty service, revenue collection, etc.)
are carried out electronically on the Internet based on appropriate computer programs . All
processes, that occur in the field of electronic commerce, need to be correctly reflected in the
accounting system. However, today they are practically unexplored. Improving the provisions of
the organization and accounting methods of electronic money, as a new specific object of
accounting, will allow to improve the operational management of the financial resources of the
economic entity.

The choice of a specific type of electronic money depends on many factors: whether the
payments are made within the borders of one country, or are related to the foreign economic
activity of the business entity; availability of electronic money account top-up points (electronic
wallets) and points of exchange of conventional units of one or another payment system; ease of
use, availability of a support service, speed of response of the system developers to failures of
the settlement procedure, and others.

Electronic money also refers to modern inferior credit money in the form of "deposit
money". The same form includes traditional (cheque) deposits. In this source, the following
definition of money is given: - "it is a specific commodity that has the property of being
exchanged for any other commodity, that is, as a general equivalent." Electronic money also
meets this definition and is an analogue of non-cash funds.


In order for the economic entity to fully apply all the advantages of using modern
information technologies, the development of the Internet, it is necessary to take into account the


ISSN 2697-2212 (online), Published under Volume 31 in Jul-2023

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legal restrictions and use those electronic payment tools that will allow to avoid contradictions in
accounting and properly organize calculations.

According to the available data, electronic money is a very potential alternative for
increasing financial inclusion. Telecommunications and banking companies also compete in the
production of e-money services and products. A payment system developed by banks in
accordance with technological progress. Almost all major banks in Indonesia now have e-money
services, e-money can be a legal payment system that favors the upper and lower middle class
communities, as well as payment systems and human resources. This can help them carry out
cashless transactions more often.

According to the available data, electronic money is one of the potential alternatives in
increasing financial accessibility. Telecommunications and banking companies also compete in
the production of e-money services and products. Payment system developed by banks according
to technological progress Almost all major banks in Indonesia now have electronic money
services. Electronic money can be a legitimate payment system that favors the upper middle
class and the lower middle class, and the payment system and available human resources can
support them to go cashless more often.

The financial legislation of electronic money as units of value stored on an electronic
device, accepted as a means of payment by persons other than the person who issued them, and
is a monetary obligation of this person, which is carried out in cash or non-cash form. The
definitions of the focus on the obligation of the issuer to convert electronic money into cash or
cashless at the user's request. This solves the problem of securing the value of electronic
payment instruments. Scholars who adhere to the approach of the traditional view define money
as a new third form of money, which is now developing and gradually taking shape. Their
expectations will come true if central banks implement their declared intentions regarding the
issuance of national electronic currencies. This will radically change the content, procedure of
use and accounting of electronic money.

Electronic money or E-money was introduced as a payment instrument more than 20
years ago. The dynamics of the use of e-money was much slower than expected at the beginning,
primarily due to the expensive implementation, while at a later stage the introduction of complex
regulations for e-money institutions acted as a drag. Therefore, in this article (after defining e-
money, analyzing e-money as a tool and its introduction into the market), the main focus is the
regulatory process necessary for the implementation of the new system. There is a useful
experience of the countries of the Eurozone, as well as the countries of the region, which helps
each country to discover and explore new challenges in the field of using electronic money and


introducing new ways of banking. With the digital age still ahead, electronic money will cause
many discussions and problems in the near future. On the other hand, the presence of electronic
money raises many debates regarding its impact on monetary policy due to its ability to replace
currency in circulation. So far, its impact has been negligible. In order to develop an objective
approach to the analysis of future relationships between these processes, this article analyzes the
impact of electronic money on the monetary policy of central banks.

Various types and forms of digital payment instruments are intensively developing and


ISSN 2697-2212 (online), Published under Volume 31 in Jul-2023

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rapidly spreading, which initiate radical changes in the global financial system. Looking at
current economic realities, the European Central Bank is considering issuing an electronic euro
in early 2021, and the US Federal Reserve is exploring the possibility of issuing an electronic
dollar. So, electronic money has already become an economic reality of the modern globalized
world and is in the process of further rapid modernization and improvement. Worlds’s
governments are trying to speed up the digitalization of the financial system and make them
manageable. At this stage, it is the legal registration of electronic payments and the formation of
the state mechanism for their management. Legislative regulations regarding the accounting of
electronic money will be developed at the next stage, after the issuance of national electronic
currencies. Progressively oriented companies all over the world are already actively developing
online trade, thus making online payments with various types of digital money and facing the
need to keep accounting records of electronic transactions in accordance with accounting
legislation. At the same time, as the field of use of electronic money, and the sphere of their
accounting is at the stage of change and metamorphosis also in all countries of the world.
Scientific research on the essence, types and accounting procedure of electronic money needs
constant updating due to rapid changes in the subject of research.

In addition, cash and non-cash money are the national currency of individual countries.
The countries of the world issue national currencies, which always have a physical medium
(banknotes, coins), manage their circulation and are a guarantor of their value. Instead, the issuer
of electronic money can be a private company, which undertakes to convert it into the selected
currency at the request of users of electronic money. Electronic money now goes beyond state or
international regulation. The difference between electronic money and traditional forms of
money (cash and non-cash) is the reason for scientific discussions about their essence. Electronic
money can fully fulfill the following functions of money: a measure of value, a means of
exchange, a means of payment and a means of accumulation [6]. Electronic money cannot yet
assume the function of world money, but over time the actions of the countries' central banks
may lead to the acquisition of this function. Scientists argue about the essence of electronic
money, because they interpret its place in relation to cash and non-cash money in different ways.

Central banks of different countries consider money within the legal framework defined
by state legislation. Therefore, the banking sector often ignores private issuers in its reports,
narrowing the concept of electronic money to the electronic form of non-cash funds available in
banks. EU Directive 2009/110/EC criticizes this approach, stating that the definition of
electronic money "must be broad enough not to hinder technological innovation and cover not
only all electronic money available on the market today, but also those products that may be
developed in the future".


Conclusions
The modern world is immersed in virtual space. Electronic money is an important tool for
the digitalization of economic and social life. The importance of electronic payments will
inevitably grow, and the scope of application will expand, perhaps even until e-money achieves
the function of world money at the international level. All new participants in electronic
payments will increasingly enter the financial market, primarily electronic payment systems


ISSN 2697-2212 (online), Published under Volume 31 in Jul-2023

Copyright (c) 2023 Author (s). This is an open-access article distributed Volume 31, 2023
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copy of this license, visit https: //creativecommons.org/licenses/by/4.0/


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popular abroad (such as PayPal). It is expected that domestic enterprises at the legislative level
will be allowed to carry out more transactions with electronic money than just payment for goods
(works, services). In the course of the described changes, it will be necessary to regularly update
both accounting laws and methodological recommendations on the accounting of electronic
calculations of enterprises.


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ISSN 2697-2212 (online), Published under Volume 31 in Jul-2023

Copyright (c) 2023 Author (s). This is an open-access article distributed Volume 31, 2023
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copy of this license, visit https: //creativecommons.org/licenses/by/4.0/


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