Publication
The Korean Journal of Economic Studies
Moneyness of the Cyber Money ‘Dotori' and a Perspective on Its Monetary Development
Yun-Ho LeeYear 2009Vol. 57No. 1
Abstract
This paper analyses empirically whether the experience of using the cybermoney ‘Dotori’ may have an effect on the positive awareness of its moneyness,and argues the theoretical implications of the analysis in the perspective on acyber money’s development to a future money. The moneyness of Dotori is fornow recognized significantly negatively. It is also found, however, that themore a group of people uses Dotori, the more it recognizes Dotori as a cashand the possibility of this cyber money evolving into a next generationcurrency. Provided the unit of account of a cyber money follows the same ofa base money, the uncertainty of measuring its par value may vanish and theinstitutional foundation of obtaining interest of floating money consequently beabated. It results that the monetary system in the future may have the sameframe as today, where the base money of a central bank and its unit ofaccount is dominantly used. As for now, cyber money should be ratherregarded as a marketing tool which helps the issuer obtain floating earningsthan as a money competing with a base money. Cyber money uses its ownunit of account but for obtaining interest of floating money not for enhancingits moneyness.