Assessing the Potential for Electronic Wallets (E-Wallets) to Replace Cash: A Comparative Analysis of China, Malaysia, and Guatemala

Abstract

This paper aims to investigate the viability of Electronic Wallets (E-Wallets) as a substitute for traditional cash in various countries. We posit that such a monetary transition could streamline GDP calculations, enhance tax collection, curb money laundering and illicit markets, reduce corruption, regulate money supply, quantify demand for money, lower interest rates, incentivize sales through discounts, obviate the need for physical currency production, exert greater control over inflation, facilitate cost-effective transactions, and accelerate the circulation of money within the market. The crucial condition for the success of this transition lies in the comprehensive oversight and management of the Electronic Wallet by the Central Bank Digital Currency (CBDC). Additionally, we conduct simulations to assess the fundamental prerequisites for implementing E-Wallets in three countries representing different regions and stages of development: China (a major economy), Malaysia (a mid-sized economy), and Guatemala (a smaller economy). To evaluate these economies, we propose the use of the E-Wallet Implementation Evaluator (EWI-Evaluator) for a comprehensive assessment to determine the feasibility and suitability of adopting E-Wallets as the official currency and payment method in any country worldwide.

Keywords: E-Wallet, E-Money, Monetary Policy, Multidimensional graphical modeling, learning machine, artificial intelligence, coordinate spaces, quantitative mega- data visualization. JEL Classifi

JEL Classification: Y2, Y20