Gold formed the basis for the value of today s fiat money. Besides, electronic money is not a new form of money that replaces previous forms, but rather a new way of employing existent money in transactions. Because electronic money is not real money but merely a different way of employing existent fiat money obviously it cannot replace it. One however, could have argued that by a decree government could enforce electronic money and displace the current paper standard. This however, would not work.
Electronic money is just a device of storing information regarding the amount of money.
It cannot acquire any independent purchasing power, it cannot become money itself. It functions in the same way as cheques, which cannot acquire an independent purchasing power from money. The mere fact that people would hold less currency notes in their pockets and to a greater extent employ electronic money doesn't imply a fall in the demand for fiat money as some commentators have suggested. As long as people exchange goods and services with each other, there will be a demand for money. A new way of employing money doesn't mean that it will be replaced or that there will be a fall in demand for it.