Abstract: With the vigorous development of internet technology and the growing scale of electronic payment,the issues related to electronic payment and electronic currency have become the focus of attention in theory and practice.This paper divides electronic currency into bank card and third-party payment electronic currency.We study the effect of two types of electronic currency on money demand,respectively.According to Keynesian monetary demand theory,money demand can be divided into transactional,speculative and precautionary demand.Therefore,this paper studies the influence of electronic currency on the demand of money from these three aspects.The results show that the substitution of bank card electronic currency for cash is incomplete,no matter what kind of money demand is analyzed, while the third-party electronic currency can completely substitute for cash payment.Based on the above conclusions,this paper points out the pace of interest rate liberalization should be accelerated in the future.While actively promoting the development of electronic payment and electronic currency in China,it is necessary to explore more effective monetary policy in
the new economic environment.
Key words: Electronic payment Electronic currency Money demand
The Chinese version appeared in Journal of Central University of Finance & Economics, 2018(12).