Russia’s Money Problem
That’s a curious little trend unfolding in Russia. Demand for money is shrinking. Use of electronic payments in both the public and private sectors in recent months has grown so fast that the Central Bank has had practically no demand for new money. Electronic money and online payment systems like Webmoney, which was originally intended for international money transfers has grown into much more than a local Russian payment solution. The technology and software behind Webmoney is so refined and tested that by accepting Webmoney Transfer payments, any account holder can create an almost seamless ‘automated’ Internet business. Buying, selling, paying suppliers and building long term relationships can all be accomplished through the Webmoney Transfer network. There is even a WM credit network for borrowing and lending. Read more, from Digital Money Forum. Also of not this story in The Banker magazine on how banks could find it difficult to integrate different kinds of channels.