The company announced on Mar. 5 that it had filed for Chapter 11 bankruptcy protection because it couldn't secure the financing necessary to complete a merger. E-money issuers face daunting obstacles. The current payment method of choice is credit cards, but e-money vendors say their products offer more secure and cheaper options. But a mishmash of platforms exist, and no single standard has emerged yet. Expanding online currencies across borders has led to novel regulatory and legal challenges, not only from country to country, but in the U.S., from state to state.
Progress is slow.
But the results of the Fed study won't be available until the end of 2001. Bank regulators here and abroad are reluctant to take action on some issues until they see its findings. These companies are betting that e-money is safer and easier to use online than credit or debit cards. Flooz is an online gift currency sent by e-mail and spent like money at roughly 70 participating online stores. It's sent by consumers as a gift, or used by corporations as an incentive or reward plan.