Money Supply, Counterfeit Money, and Economic Growth Effect to E-Money Transaction

Electronic money is an innovation in payment systems. Although transactions continue to increase, the ratio of electronic money transactions to transactions using the Card Payment Instrument is always less than 1%. The purpose of this study is to determine the effect of monetary instruments namely the money supply (M1), counterfeit money, and economic growth on electronic money transactions in Indonesia. This research uses a quantitative method using time series data during the period January 2016 December 2018. Data analysis uses multiple linear regression with a double log model based on OLS. The results of this study indicate that the money supply (M1) has a positive and significant effect on electronic money transactions, counterfeit money has no significant effect on electronic money transactions, economic growth has a positive and significant effect on electronic money transactions. The implication of this research is that electronic money should be given additional security such as PIN so that when the owner loses it will not lose the balance contained therein, Bank Indonesia should encourage and encourage the public to switch to using electronic money so that it can reduce the money supply and avoid the risk of counterfeit money .