The Support of Electronic Token

The use of the money supply is reflected in the development of the level of demand for money by the public. Due to the increasing demand for money in society, people want a means of payment that can facilitate daily transactions that give rise to the use of electronic money. The use of electronic money is supported by technology that uses an electronic token base that contains a memory module that has a denomination value and serial number and is verified by the relevant institution. The purpose of this study was to determine the effect of electronic money on the amount of money supply and the inflation rate. This study uses quantitative methods and uses data obtained from the official websites of BPS and BI. The sample selection method used is 60 samples which are time series data from January 2017 to December 2021. In addition, the data analysis method used is multiple regression analysis. The results showed that e-money along with other variables, namely the BI Rate and Exchange Rate has a positive and significant effect on the money supply as well as inflation is strongly influenced by electronic money along with other variables, namely money supply, BI rate, and exchange rate.