Q29What issues have arisen in relation to the rapid spread of electronic money?

A29 One concern is that different types of electronic money require different reading devices, making it extremely inconvenient for retailers in terms of cost and space. This has led to the start of the development of a terminal that can read any type of electronic cash card. Seven-Eleven Japan Co. Ltd. began to use a new electronic cash service called nanaco in April. In future, terminals will be able to read different types of electronic money and nanaco is expected to become the norm. Another issue is the use of electronic money to make payments across international borders, since this requires calculating exchange rates. While the process might be easier were an electronic money foreign exchange market set up, transactions would require careful monitoring, bearing in mind the ease with which large sums could be transferred across borders using electronic money, possibly inviting money laundering and illegal transfers.