VIII International Negotiable Instruments in the Electronic Age

Subject(s):

International financial law — International monetary law — Choice of law

This chapter assesses the application of our proposals to the era of digitalization, when negotiable instruments will take their electronic form. It outlines the various ‘electronification’ moves that have taken place within the traditional versions of negotiable instruments and considers the various international legislative frameworks that might be relevant to a digital version of negotiable instruments. Moreover, we contend that the suggested framework of choice-of-law rules should be attractive to the digital era of the instruments. The expected loss of the physical aspect of the instrument does not challenge the validity of our proposals and, in fact, enhances them. Indeed, ‘electronification’—that is, any elimination of physical processing and delivery—will enhance efficiency and speed. There is a possibility that it will also enhance security and reduce errors. Accordingly, assuming there is a business rationale for its continued use, there ought to be no doubt as to the desirability of bringing the negotiable instrument into the ambit of electronic banking.