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The Basic Conditions and Benefits of E-Wallet

Preprint · August 2023

DOI: 10.13140/RG.2.2.33265.86887/3

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The Basic conditions and benefits of

the e-Wallet
All Copyrights under Econographication Laboratory © 2023

The Basic conditions and benefits of

e-Wallet
Mario Arturo Ruiz Estrada
Econographication Virtual Laboratory (EVL)
E-mail: mario-ruiz@econographication.com or marioarturoruiz@gmail.com
Website: www.econonographication.com
Tel: +6012-6850293

This paper is interested to evaluate if electronic wallet (E-Wallet) can take over the role of cash
in any country. We assume this monetary transition can facilitate the calculation of the GDP,
taxation, control of the laundering money and black market, corruption, control of the money
supply, demand money required, low interest rate bands, sells discounts, totally avoid the
printing of coins and bills, high control of inflation, ease and cheap transactions, and more fast
money rotation in the market. The main condition is that the Central Bank Digital Currency
(CBDC) is in fully control and manage of the electronic wallet (E-Wallet). Finally, we make a
simulation to evaluate the basic conditions to implement the E-Wallet. We try it to evaluate three
countries located in different parts of the world and development stage such as China (large
economy size), Malaysia (medium economy size), and Guatemala (small economy size). To
evaluate these three economies, we are suggesting to use the E-Wallet Implementation Evaluator
(EWI-Evaluator) to do it an exhausted evaluation to accept or reject the implementation and the
uses of E-Wallet as official currency and form of payment in any country around the world.
Keywords: E-Wallet, E-Money, Monetary Policy, Multidimensional graphical modeling,
learning machine, artificial intelligence, coordinate spaces, quantitative mega- data visualization.
JEL Classification: Y2, Y20

1. Introduction
The basic idea of this research is to evaluate the basic conditions to implement the E-wallet
(Castell, 2017) )using the E-wallet Implementation Evaluator (EWI-Evaluator) to measure the
pro and cons to implement E-Wallet and replace the cash (Azali, 2016) in the market, at the same
time, we like to observe how efficient and practical is the E-Wallet can work as exchange or
payment mechanism (Dekker and Okano-Heijmans, 2020) in the real and nominal markets
(Ozcan and Santos, 2015). This research proposes a practical evaluator with a serial of
guidelines to evaluate any country to fully replace cash by the E-wallet as new currency (Hughes
and Middlebrook, 2014) and form of payment daily in our financial transactions and trading
commodities respectively. Therefore, we are going to apply the EWI-Evaluator) in three different
countries such as China (Maliehe, 2021), Malaysia, and Guatemala.

The EWI-Evaluator is considering to include economic, social, technological, and political

integral development to implement E-Wallet (Nitsure, 003) in any country. We are using four
main-variables and many sub-variables with its parameters; each parameter is fixed by 1 (the
country passes according our standard into the parameter) and 0 (the country didn’t pass our
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standard according into the parameter). If the country in analysis got it more resulults equal 1,
then the uses of E-Wallet is more effective than we use cash (Laboure and Deffrennes, 2022).
The final decision to replace cash by E-Wallet is originated from a large number of database
classification and storage to find our final index. To find the final result and decision, it is
depend on the serial of parameters that we are established in each our main variables (economic,
social, politic, and technological factors) and hundreds of sub-variables.

Hence, the selection of impose or reject the uses of the E-wallet as currency and payment depend
on the final account of all four main-variables and infinite sub-variables. The final result is
selected according to a large number of positive results according to our parameters were
established. Therefore, we have the possibility to evaluate more precise the implementation of
the E-Wallet with more precision than before it according to the use of our evaluator.

The first specific objective in this research paper is to present the new evaluator entitled the
EWI-Evaluator based on the application of a default selection. The default selection will evaluate
best results from the economic, politic, social, andf technological integral development. It is
based on our parameters are established into each main-variable and sub-variable(s) respectively.

The second specific objective is the application of EWI-Evaluator, it is offering a new way to
take decisions in the uses or implementation of E-Wallet. However, we present also the EWI-
Graph that is constructed based on the traditional 3-Dimensional space concept, but they
represent 4-D, 5-D, 8-D, 9-D and Infinite-Dimensions. The EWI-Graph is to facilitate easy
understanding of all sub-variables distributed into the economic, social, political, and
technological integral development sub-variables.

Finally, this research will to show a flow chat to explain the construction and implementation of
the EWI-Evaluator. The idea to build the EWI-Evaluator and EWI-Graph is to offer an
alternative indicator and graphical model to take the crucial decision to remove cash and
replaced by the E-Wallet as currency and payment system (Bilotta and Botti, 2018).

2. The E-wallet Implementation Evaluator (EWI-Evaluator)

This part of this research presents a new concept entitled the “the E-wallet
Implementation Evaluator (EWI-Evaluator).” The EWI-Evaluator incorporates all economic,
social, political, technological integral development integral that any country may show in its
different phases to implement the E-Wallet anytime and everywhere. The EWI-Evaluator
assumes that each country has its own payment system structure. At the same time, it defines the
payments system the joining of a certain conditions that are interested in creating a strong
currency and payment system. The E-Wallet implementation is based on five assumptions:
 Change from cash to E-Wallet in any country cannot be
forced; it can only be induced by certain basic conditions.
 The E-Wallet used in any country is spurred onwards by the
Favorable conditions and strong economy and financial system.
 Each E-Wallet has its unique set of characteristics.
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Therefore, it might be difficult to try to implement the E-Wallet

in another, less successful, in neighbors or regions far away.
 The E-Wallet attempts to evaluate different favorable conditions such as economic,
social, political, and technological before we implement the E-Wallet as currency or
payment system.
 The implementation of E-Wallet depends on the flexibility of
each country macroeconomic and financial systems.
The EWI-Evaluator offers a new perspective of mechanism in take decisions to
implement it; but the EWI-Evaluator makes it possible to analyze and visualize different
countries’ before they take it the final decision to implement the E-Wallet as currency and
official transactions and payment for goods and services respectively.
3. Phases in the E-wallet Implementation Evaluator (EWI-Evaluator)
3.1. Phase I: Design of the Multi-input Database Table
The multi-input database table is an alternative style of database analysis framework that
permits the storage of large amounts of data to measure a single variable. This single variable
can show the evolution of any phenomenon from a general perspective. The multi-input database
table is designed to evaluate either by country or region.
The multi-input database table is focused on measuring four main independent variables
(e.g. X1, X2, X3, and X4). Each main independent variable is formed by “n” number of sub-
variables. The number of sub-variables in each main independent variable is non-limited; for this
reason, the multi-input database table concept does not have any specific ranking. Instead, there
exists a basic classification of sub-variables. Only two main independent variables have a
classification. First, economic integral development (X1) (see Table 1). Second, social integral
development (X2) (see Table 2). Thirdly, the political integral development (see Table 3).
Fourthly, the technological integral development (X4). However, each sub-variable has a code
number respectively. The code number depends on the area of integral development (X1 =
economic integral development; X2 = social integral development; X3 = politic integral
development and X4 = technological integral development). The reason that all sub-variables
have the same importance (weight) is because we are interested in measuring a single value; in
this case, each main independent variable (X1, X2, X3 and X4). To give the same weight to all
sub-variables, it is necessary to use a binary system. The binary system helps to maintain a
balance among all variables in each multi-input database table. Another reason is that the binary
system helps to create an alternative model of analysis when it comes to countries with limited
information, especially in the case of developing countries and less developed countries (LDC’s).
The idea of applying a multi-input database is to find the domestic integral development -
DID- (country) and finally the global integral development -GID-. The idea of finding the DID
and the GID is to demonstrate that successful ti Implement E-Wallet process depends on the
major part of the DID being strong enough; there can only be a small gap between the four
integral development structures. In this case, the GID is result of the sum of the component GID.
The four main independent variables will show the GID in different areas of development
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[economic integral development (X1), social integral development (X2), political integral
development (X3) and technological integral development (X4)].
The number of variables used in the EWI-Evaluator varies, depending on the objectives
of the researchers or policy-makers (Ruiz Estrada, 2011) and the orientation of the cases of
research. In the case of this research, 100 variables with their respective tables and parameters
were selected: 25 variables for economic integral development index (X1) [see Table 1]; 25
variables for social integral development index (X2) [see Table 2]; 25 variables for politial
integral development index (X3) [see Table 3] and 25 variables for technological integral
development index (X4) [see Table 4].
Once the number of sub-variables is determined, the next step is to collect the statistical
and historical data that constitute sub-variables (“n” number) in each main independent variable
(X1, X2, X3 and X4). All sub-variables within each main independent variable (X1, X2, X3 and
X4) may not have a direct relationship between them -- they may be independent variables or
endogenous variables. However, all the sub-variables in each multi-input database table are
meant to measure a single variable or main independent variable, that is, each of the
development integral indexes (Xi).
Each of the four Xi indexes (X1, X2, X3 and X4) to be measured is viewed as a main
independent variable (i.e. endogenous variable). However, there is no connection or
interdependency among these four Xi indexes when they are joined in the graph. These four Xi
indexes are used to draw a graph that represents the evolution and stages of the E-Wallet
implementation process from a general perspective.
3.2. Types of Multi-input Database Tables
The first type of multi-input database table pertains to “Domestic Integral Development
(DID) and Global Integral Development (GID)”. It uses “N” number of variables. The number
“N” is decided by researchers or policy-makers. The number of cases in the study is represented
by “M”. In the case of the EWI-Evaluator, “M” represents only one country (i.e. a domestic
financial system development). The time factor “T” depends on the time parameters that the
researchers or policy-makers are interested in using. Therefore, “T” can be in terms of years or
decades. The second type of multi-input database table pertains to “Domestic Integral
Development (DID) and Global Integral Development (GID)”. All the conditions and functions
of “N”, “M” and “T” factors are the same as that in the first type of multi-input database table,
except that “M” here represents a “Global Integral Development (GID)” rather than a “Domestic
Integral Development (DID)”. For this research, the second type of multi-input database (by
region) is adopted.
3.3. Phase II: Measurement of Integral Development Indexes (Xi)
The second phase of the implementation of the EWI-Evaluator involves the measurement of integral development
indexes (Xi) using the variables in four basic multi-input database tables (see Diagram 1). The development indexes
are economic integral development index (X1) originates from the calculus obtained from the economic
multi-input database table (see table 1). After we obtain the result of X1, we can proceed to
classify the results into three different parameters. These parameters are: Reject the
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implementation of E-Wallet or level 1 (0 ≤ X1 ≤ 0.33), X1 index partially accepted the uses of E-

Wallet or level 2 (0.34 ≤ X1 ≤ 0.66) and X1 index is fully agree to implement E-Wallet or level 3
(0.67 ≤ X1 ≤ 1); social integral development index (X2) originates from the calculus applied in the social
multi-input database table (see table 2). After we obtain the result of X2, we can proceed to
classify the results into three different parameters. These parameters are to reject the
implementation of E-Wallet or level 1 or level 1 (0 ≤ X2 ≤ 0.33), X2 index is partially accepted
the uses of E-Wallet or level 2 or level 2 (0.34 ≤ X2 ≤ 0.66) and X2 index is fully agree to
implement E-Wallet or level 3 (0.67 ≤ X2 ≤ 1); political integral development index (X3)
originates from the calculus applied in the economic multi-input database table (see table 3).
After we obtain the result of X3, we can proceed to classify the results into three different
parameters. These parameters are to reject the implementation of E-Wallet or level 1 (0 ≤ X3 ≤
0.33), X3 index is political integral development accepted the uses of E-Wallet or level 2 (0.34 ≤
X3 ≤ 0.66) and X3 index is fully agree to implement E-Wallet or level 3 (0.67 ≤ X3 ≤ 1);
technological integral development index (X4) originates from the calculus applied in the
technological multi-input database table (see table 4). After we obtain the result of X4, we can
proceed to classify the results into three different parameters. These parameters are to reject the
implementation of E-Wallet or level 1 (0 ≤ X4 ≤ 0.33), X4 index is partially accepted the uses of
E-Wallet or level 2 (0.34 ≤ X4 ≤ 0.66) and X4 index is fully agree to implement E-Wallet or level
3 (0.67 ≤ X4 ≤ 1). These variables are analyzed with their codes, descriptions, parameters and sources
respectively (see Tables 1, 2, 3, and 4).
The parameters are divided into two categories. The categories are:
(i) Quantitative data
(ii) Qualitative variables
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Table 1: Domestic Economic Integral Development Index (X1)

Code Description Parameter Results I
X1:1 Money supply expansion Growth rate M1 + M2 1 = lower or 0 = higher
X1:2 Money supply controlled Monetary policy 1 = yes or 0 = no
X1:3 Interst rate (active and pasive) Banking interes rate 1 = low or 0 = high
X1:4 Low taxes Taxes % 1 = lower or 0 = higher
X1:5 Strong banking system Banking regulations 1 = exist or 0 = non exist
X1:6 Money printed control Central bank printing % 1 = lower or 0 = higher
X1:7 Inflation CPI rate 1 = lower or 0 = higher
X1:8 Unemployment Unemployment rate 1 = lower or 0 = higher
X1:9 Economic growth GDP real prices 1 = Higher or 0 = lower
X1:10 Fiscal deficit National budget 1 = lower or 0 = higher
X1:11 Government spending National budget 1 = higher or 0 = lower
High spending and
X1:12 consumption Consumption rate 1 = higher or 0 = lower
X1:13 Savings rates saving rate per capita 1 = higher or 0 = lower
X1:14 Easy credit Credit levels 1 = higher or 0 = higher
X1:15 Low speculation Market control 1 = higher or 0 = lower
X1:16 Exports Exports volume % 1 = higher or 0 = lower
X1:17 Imports Imports volume % 1 = lower or 0 = higher
X1:18 FDI flows FDI volumes % 1 = higher or 0 = lower
X1:19 Market controls Banking regulations 1 = yes or 0 = no
X1:20 Prices control Top prices 1 = no or 0 = yes
X1:21 Money rotation Money multiplier 1 = yes or 0 = no
X1:22 Credit card users M2 % 1 = yes or 0 = no
Comercial banking transfers
X1:23 rate M1 + M2% 1 = higher or 0 = lower
X1:24 Cash in circulation M1% 1 = higher or o = lower
X1:25 income distribution Gini coefficient 1 = lower or 0 = higher
Source: Author
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Table 2: Domestic Social Integral Development Index (X2)

Code Description Parameter Results I
X2:1 Literacy Higher than 90% 1 = higher or 0 = lower
X2:2 University graduates % population graduates 1 = higher or 0 = lower
X2:3 Highschool graduates % population graduates 1 = higher or 0 = lower
X2:4 Elementary graduates % population graduates 1 = higher or 0 = lower
X2:5 Access to free education % population 1 = higher or 0 = lower
X2:6 Government spending in edu National budget in education 1 = higher or 0 = lower
X2:7 Health care access % population 1 = higher or 0 = lower
X2:8 Social security % population 1 = higher or 0 = lower
X2:9 Nutrition levels % malnutrition 1 = lower or 0 = higher
X2:10 Middle class levels % population 1 = higher or 0 = lower
X2:11 Subsidies Govwernment support % 1 = higher or 0 = lower
X2:12 Housing access % population with housing 1 = higher or 0 = lower
X2:13 Basic education in tech % access to phones 1 = higher or 0 = lower
X2:14 Traditional thinking sociery % population to using cash 1 = lower or 0 = higher
X2:15 Poverty % population 1 = lower or 0 = higher
% population doing part
X2:16 Under-employment time 1 = lower or 0 = higher
X2:17 Immigration % population 1 = lower or 0 = higher
X2:18 Remittancesfrom overseas % of the GDP 1 = higher or 0 = lower
X2:19 Rural area population % population 1 = lower or 0 = higher
X2:20 Urban population % population 1 = higher or 0 = lower
X2:21 Migration % population 1 = higher or 0 = lower
X2:22 Heterogenous society Multi-ratial society % 1 = higher or 0 = lower
X2:23 Socio-economic discrimination Access to jobs and credit 1 = higher or 0 = lower
% population without
X2:24 Housing deficit housing 1 = lower or 0 = higher
Credit and prices of real
X2:25 Land and property prices estate 1 = higher or 0 = lower
Source: Author
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Table 3: Domestic Political Integral Development Index (X3)

Code Description Parameter Results I
X3:1 Law protection Exist strong law 1 = yes or 0= no
X3:2 Government support to new initiatives Actions and politics 1 = yes or 0= no
X3:3 Security forces % of public investment 1 = higher or 0 = lower
Application of the law and
X3:4 enforcement % cases in court and jaik 1 = higher or 0 = lower
X3:5 legal facilities Courts and jailss 1 = many or 0 = few
X3:6 Banking law Banking legal framework 1 = yes or 0= no
% population suffer
X3:7 Security efficie3ny violence 1 = higher or 0 = lower
X3:8 Political stability Number of demostrations 1 = lower or 0 = higher
X3:9 Proactive government Actions and policies 1 = yes or 0= no
X3:10 Strong central bank Regulations 1 = higher or 0 = lower
X3:11 Banks monitoring by government Banks intervention 1 = higher or 0 = lower
X3:12 Public banks Number of banks 1 = higher or 0 = lower
X3:13 Private banks Number of banks 1 = higher or 0 = lower
X3:14 Trade market regulations Freedom of consumers 1 = higher or 0 = lower
X3:15 Flexible policies to invest Investment procedures 1 = lower or 0 = higher
X3:16 Police forces performance Reduction of violence 1 = higher or 0 = lower
X3:17 Corruption Number of cases annually 1 = lower or 0 = higher
X3:18 Anti-corruption policies Cases in court 1 = higher or 0 = lower
X3:19 Anti-doping policies Cases of antidomping 1 = higher or 0 = lower
X3:20 Banking freedom Number of private banks 1 = higher or 0 = lower
X3:21 Mafias control Number of cases annually 1 = higher or 0 = lower
X2:22 Black markets control Number of cases annually 1 = higher or 0 = lower
X3:23 Cybersecurity law Policies and punishment 1 = yes or 0= no
X3:24 Protection to cunsumers law Control of prices 1 = higher or 0 = lower
X3:25 Savings protection law Policies and regulations 1 = yes or 0= no

Source: Author
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Table 4: Domestic Technological Integral Development Index (X4)

Code Description Parameter Results I
X4:1 Internet speed Speed of internet in seconds 1 = higher or 0 = lower
X4:2 Telephone bands Number of telephe bands 1 = higher or 0 = lower
X4:3 Cybersecurity Strict regulations and punishment 1 = higher or 0 = lower
X4:4 Access to internet % population 1 = higher or 0 = lower
X4:5 Internet security % population 1 = higher or 0 = lower
X4:6 Handphones price aceess Cheap access to buy a phone % pop 1 = higher or 0 = lower
X4:7 Electricity price Price of electricity 1 = lower or 0 = higher
X4:8 Free internet Coverage by Km2 1 = higher or 0 = lower
X4:9 Access information Without restriction to access info 1 = higher or 0 = lower
X4:10 Security and network Quality of hetwork systems 1 = higher or 0 = lower
X4:11 Satellite services Number of satellites 1 = higher or 0 = lower
X4:12 Internet reception Internet access by Km2 1 = higher or 0 = lower
X4:13 Easy access to applications Number of easy applications 1 = higher or 0 = lower
X4.:14 Memory access Amount of memory 1 = higher or 0 = lower
X4:15 Internet price Price market 1 = lower or 0 = higher
X4:16 Internet power Uses of 5G 1 = yes or 0 = no
X4:17 internet reception Consistency and stability 1 = yes or 0 = no
X4:18 Internet facilities Internet suppliers 1 = higher or 0 = lower
X4:19 Handphone prices Price market 1 = lower or 0 = higher
X4:20 Telephone companies services Number of companies 1 = higher or 0 = lower
X4:21 Bankin electronic platforms Homepage banks 1 = higher or 0 = lower
X4:22 New electronic technologies New ways of payment electrically 1 = higher or 0 = lower
X4.:23 Government control in ICT Controls and policies 1 = higher or 0 = lower
X4:24 Freedom of transfers Banking policy and controls 1 = lower or 0 = higher
X4:25 E-mail services Accesibility and speed 1 = higher or 0 = lower
Source:
Author
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3.3.1. Steps to Obtain Development Indexes (Xi)

There are four development indexes (Xi) to be obtained. These four Xi indexes are:
domestic economic integral development index (X1), domestic social integral development index
(X2), domestic economic integral development index (X3) and domestic technological integral
development index (X4). The first step is to define all variables and parameters. Once all the
variables and parameters are defined, all the data based on the variables and parameters is listed
in each multi-input database table. The next step is to add the values of all variables in the
column of the actual situation (AS) in each multi-input database table. The total possible results
(TPR) obtained are then located in the TPR column next to AS column. With the TPR in place,
the next step is to compute each regional development index (Xi). The computation is done by
applying the expression (1) to the values in the multi-input database tables.
4
Xi = ΣXi = ΣASi x 100 / ΣTPRi (1)
i =1
Following the above four steps, the fifth step is the plotting of two graphs: (a) the
domestic integral development indexes (Xi), and (b) the domestic economic integral
development, domestic social integral development, domestic political integral development, and
domestic technological integral development (see Figure 1). The latter graph serves as a means
to study the balance between achievements and difficulties that any country to adapt E-Wallet as
currency or payment system.
3.3.2. Introduction to Analysis of the DID Index and the GID Index
Each of the domestic integral development indexes (Xi’s) plays an important role in the
measurement of global integral development index. This index can be affected by any change in
the Xi indexes in the short and long term. The Xi indexes may reflect one of two different
scenarios. First, if some or all domestic integral development indexes which are economic (X1),
social (X2), political (X3), and technological (X4) increase, then the GID index may increase. The
second scenario is that if some or all domestic integral development indexes (Xi) by area of
development (economic, social, political, and technological) decrease, then the GID index may
decrease.
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Fig.1: The Domestic Integral Development (Xi) Indices Diagram

3.4. Phase III: Measurement of the Global Integral Development (GID) Index
The third phase of the implementation of the EWI-Evaluator presents a general definition
of the domestic integral development indexes (Xi). The GID index is an indicator to compare
different conditions to replace cash by E-Wallet process in any country. It is based on the
domestic integral development indexes (Xi) of a country. Therefore, the GID index is a means of
analyzing the uses of E-Wallet as a new currency or payment system in the market.
3.4.1. Steps to Obtain the RD Index
The first step is to plot each (Xi) index: domestic economic integral development index
(X1), domestic social integral development index (X2), domestic political integral development
index (X3), and domestic technological integral development index (X4) on the Multi-
Dimensional Cartesian plane (see Figure 2 and Figure 4) by Ruiz Estrada (2017). It should be
noted that the GID index value (single percentage) is an approximation of the past and present
situations that any trade bloc may encounter in its evolution. The GID index is the summation of
all the four domestic integral development indexes (Xi). The second step is to plot the EWI-
Graph based on the total value of the four domestic integral development indexes (Xi). This is
followed by the calculation of the GID based on expression (2). It should be noted that the values
of the Xi indexes are independent of one another. The EWI-Graph consists of four different
areas, where each area has a limit equivalent to 0.25. The total value of these four areas is equal
to 1 as observed in the expression (2.6.)
Each axis of Figure 2 and Figure 4 is either the base or the height of the graph
(represented by B and H respectively in the graph). The GID1 uses the result of the global
development index in the axis X1 which is equal to B1, and the global development index in the
All Copyrights under Econographication Laboratory © 2023

axis X2 which is equal to H1, followed by the application of (2.1.) The same steps and expression
are used for GID1, GID2, GID3 and GID4 (see Figure 3). The total GID index for this period is
the sum of all the GIDs. This is depicted in expression (2.5.) The total area is divided into four
dissimilar triangles each with an area equal to {Base (=Bi) x Height (=Hi)}/2. Therefore, the
triangle areas have to be summed up to derive the total surface area (see expression 2.5.)
4 4
Σ GIDi = Σ {Base (=Xi) x Height (=Hi)} / 2 (2)
i=1 i=1

[B1 = H4]: GID1 = {X1(=B1) x X2(=H1)}/2 (2.1)

[B2 = H1]: GID2 = {X2(=B2) x X3(=H2)}/2 (2.2)
[B3 = H2]: GID3 = {X3(=B3) x X4(=H3)}/2 (2.3)
[B4 = H3]: GID4 = {X4(=B4) x X1(=H4)}/2 (2.4)
GID = GID1 + GID2 + GID3 + GID4 (2.5)
B= Base H= Height
The main reason to apply this formula is based on the measurement of the area of the
four-sided figure on the horizontal plane. Therefore, the value of each area will be used to
measure the final result on the origin (Y) or fifth axis. Y is based on the result of the four triangle
areas under the horizontal plane.
3.4.2. Analysis of the GID Index
The analysis of the GID index is based on the comparison of two periods or regions. In
the case of this thesis, two periods (i.e. first period and second period) are compared. The total
GID index may present three possible scenarios, namely (a) expansion (GID’ first period < GID’’
second period), (b) stagnation (GID’ first period = GID’ second period) and (c) contraction (GID’
first period > GID’’ second period).
In terms of time-span, the GID index can be measured and compared on a yearly basis,
five-yearly basis, and by decades. For this research, the time-span is one periods (the
2022/2023), which can later be compared. In terms of space, the GID index can be measured and
compared to evaluate the favorable conditions to implement E-Wallet in any country. At any
historical moment, conversion process (from cash to R-Wallet) in any country is based on the
comparison of the size of the domestic integral development index (Xi).
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Fig. 2: The Global Integral Development (GID) Index

Fig. 3: Areas of Rotation is Applied on the GID Index

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Fig. 4: Global Integral Development (GID) Index

3.5.1. Phase IV: Measurement of the Global Integral Development Stage (GID) Index
The last phase in the implementation of the EWI-Evaluator is the measurement of the
global integral development (GID) index. The GID index measures the the conditions to evaluate
the adaptation of E-Wallet as currency and payment system. The GID index is considered a
dependent variable in the EWI-Evaluator.
In the measurement of the GID index, four domestic integral development indexes (Xi)
are used: domestic political integral development index (X1), domestic social integral
development index (X2), domestic economic integral development index (X3), and domestic
technological integral development index (X4). A constant coefficient – domestic development
approach inclines (DDAI) - is also used concurrently. The DDAI is represented by a, b, c, and d
in expression (3) and is applied to each domestic integral development index (Xi). Each DDAI
(a, b, c, or d) has a limit that is equal to 1 [Refer to expression (3)]. The weighted sum of the
DDAI’s cannot be more than 1.
The application of the DDAI is twofold. The first application is the DDAI Homogeneous
Interest. In this application, each DDAI has the same level of importance in the analysis [Refer to
expression (3.1.)]. The second application is the DDAI Incline. There are four possibilities in this
application: domestic economic development approach incline (3.2.), domestic social
development approach incline (3.3.), domestic political development approach incline (3.4.) and
technological development approach incline (3.5.)
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Analysis of the GID Index

After the type of DDAI to be applied is determined, the regional integration stage (RIS)
index is measured according to expression (3). The GID index analysis may reveal one of three
different scenarios, namely (a) under-developed stage (0 ≤ GID ≤ 0.33), (b) developing stage
(0.34 ≤ GID ≤ 0.66) and (c) developed stage (0.67 ≤ GID ≤ 1). The analysis of the GID index
can provide a general idea or approximation of a good timing to adapt E-Wallet as currency and
payment system through time and space. The following is a suggested combination of the
application of the DDAI in the measurement of the GID index:
Y = GID = aX1 + bX2 + cX3 + dX4 ≤ 1 (3.)
a = 0.25, b = 0.25, c = 0.25, d = 0.25 = 1 => DDAI homogeneous interest (3.1)
a = 0.40, b = 0.20, c= 0.20, d = 0.20 = 1 => DDAI economic development approach incline (3.2)
a = 0.20, b = 0.40, c = 0.20, d = 0.20 = 1 => DDAI social development approach incline (3.3)
a = 0.20, b = 0.20, c = 0.40, d = 0.20 = 1 => DDAI political development approach incline (3.4)
a = 0.20, b = 0.20, c = 0.20, d = 0.40 = 1 => DDAI technological development approach incline (3.5)
It must be highlighted that the above combination represents only several of many
possibilities or permutations. This should draw attention to the flexibility of the GID index in
adapting to any situation or chosen policy mode. The GID index presents an approximation of
the global development from the economic, social, political, and technological development
perspectives concurrently based on a new concept of graphic representation. This new concept of
graphic representation consists of five axes, each of which has a positive value (in the case of
this research, the value in each axis is represented by a percentage). Once the axes of the graph
are in place, the next step is to plot the four Xi indexes (economic, social, political, and
technological Xi indexes) in four of the axes respectively. These Xi indexes are independent
variables. The total value of the four axes is equal to 1 (see Figure 5). The fifth axis, which is
represented by Y and positioned in the center of the graph (among the other four axes),
represents the dependent variable GID index. This fifth axis is the convergent point of all the
other four axes or more precisely, the four areas - economic, social, political, and technological -
of the regional development indexes (Xi). The GID index (Y) is depicted as follows in
expression (4):
Y = F (X1, X2, X3, X4) ≤ 1 (4)
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Figure 5: The Graph of the Global Integral Development Stage (GID) Index

4. Evaluation to implement E-Wallet in China, Malaysia, and Guatemala under the

uses of EWI-Evaluator
In this research took over as experimental cases to fully replace cash by E-Walle. We
propose to evaluate the case of China (Huang and Wang, 2021)., Malaysia, and Guatemala.
The EWI-Evaluator is using a new analytical framework to analyze if a country has a serial
of basic conditions to adapt the E-Wallet as the main currency or payment system to buy
any good or service in the market. The EWI-Evaluator is using four domestic integral
development indixes (Xi): the domestic economic integral development index (X1), the
domestic social integral development index (X2), the domestic political integral
development index (X3), and domestic technological integral development index (X4).
These four domestic integral indices (Xi) can help to build the Global Integral Development
index (GID). The GID is the final index can dertermite if we implement, considering, or
reject the implementation of E-Wallet in any country. In our preliminary results in Table
All Copyrights under Econographication Laboratory © 2023

5, we can observe that China had a high GID together with its four domestic integral
development indices (Xi) . The GID index of China is GID Index is 100/100, Malaysia
90/100, and Guatemala only 29/100 (see Tablee 5 and Figure 6. Therefore, we can obsertve
that China and Malaysia can implement the fully uses of the E-Wallet and replace cash in
the market. Howeverm in the case of Guatemala, the EWI-Evaluator reject the uses of the
E-Wallet in this moment because the four domestic integral development (Xi) are
extremelly weak and poor performance (X1 = 10, X2 = 4, X3 = 7 , X4 = 8) respectively.

Table 5: Economic Integral Development Index (X1); Social Integral Development Index (X2);
Political Integral Development Index (X3); Technological Integral Development Index (X4) in
China, Malaysia, and Guatemala

Economics (X1)
Code Description China Malaysia Guatemala
X1:1 Money supply expansion 1 1 0
X1:2 Money supply controlled 1 1 1
X1:3 Interst rate (active and pasive) 1 1 0
X1:4 Low taxes 1 1 1
X1:5 Strong banking system 1 1 1
X1:6 Money printed control 1 1 1
X1:7 Inflation 1 1 0
X1:8 Unemployment 1 1 0
X1:9 Economic growth 1 1 0
X1:10 Fiscal deficit 1 0 0
X1:11 Government spending 1 0 0
X1:12 High spending and consumption 1 1 1
X1:13 Savings rates 1 0 0
X1:14 Easy credit 1 1 0
X1:15 Low speculation 1 1 0
X1:16 Exports 1 1 1
X1:17 Imports 1 1 0
X1:18 FDI flows 1 1 0
X1:19 Market controls 1 1 1
X1:20 Prices control 1 1 0
X1:21 Money rotation 1 1 1
X1:22 Credit card users 1 1 1
X1:23 Comercial banking transfers rate 1 1 1
X1:24 Cash in circulation 1 1 0
X1:25 income distribution 1 1 0
Total 25 22 10
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Social (X2)
Code Description China Malaysia Guatemala
X2:1 Literacy 1 1 0
X2:2 University graduates 1 1 0
X2:3 Highschool graduates 1 1 0
X2:4 Elementary graduates 1 1 0
X2:5 Access to free education 1 1 0
X2:6 Government spending in edu. 1 1 0
X2:7 Health care access 1 1 0
X2:8 Social security 1 1 1
X2:9 Nutrition levels 1 1 0
X2:10 Middle class levels 1 1 0
X2:11 Subsidies 1 1 0
X2:12 Housing access 1 1 0
X2:13 basic education in technology 1 1 0
X2:14 traditional thinking sociery 1 1 1
X2:15 Poverty 1 1 0
X2:16 under-employment 1 1 0
X2:17 Immigration 1 1 0
X2:18 Remittancesfrom overseas 1 1 1
X2:19 rural area population 1 1 0
X2:20 urban population 1 1 1
X2:21 migration 1 0 0
X2:22 heterogenous society 1 0 0
X2:23 socio-economic descrimination 1 0 0
X2:24 housing deficit 1 1 0
X2:25 land and property prices 1 1 0
Total 25 22 4
All Copyrights under Econographication Laboratory © 2023

Political (X3)

Code Description China Malaysia Guatemala

X3:1 Law protection 1 1 0
X3:2 Government support to new initiatives 1 1 0
X3:3 Security forces 1 1 0
X3:4 Application of the law and enforcement 1 1 0
X3:5 legal facilities 1 1 0
X3:6 Banking law 1 1 1
X3:7 Security efficie3ny 1 1 0
X3:8 political stability 1 1 0
X3:9 proactive government 1 0 0
X3:10 Strong central bank 1 1 1
X3:11 banks monitoring by government 1 1 1
X3:12 public banks 1 1 0
X3:13 private banks 1 1 1
X3:14 trade market regulations 1 1 0
X3:15 flexible policies to invest 1 1 0
X3:16 police forces performance 1 1 0
X3:17 Corruption 1 0 0
X3:18 anti-corruption policies 1 0 0
X3:19 anti-doping policies 1 1 1
X3:20 banking freedom 1 1 1
X3:21 mafias control 1 1 0
X2:22 black markets control 1 0 0
X3:23 cybersecurity law 1 1 0
X3:24 protection to cunsumers law 1 1 0
X3:25 savings protection law 1 1 1
Total 25 21 7
All Copyrights under Econographication Laboratory © 2023

Technological
(X4)
Code Description China Malaysia Guatemala
X4:1 internet speed 1 1 0
X4:2 telephone bands 1 1 0
X4:3 Cybersecurity 1 1 0
X4:4 access to internet 1 1 1
X4:5 internet security 1 1 0
X4:6 handphones price aceess 1 1 0
X4:7 electricity price 1 1 0
X4:8 Free internet 1 1 0
X4:9 access information 1 1 1
X4:10 security and network 1 1 0
X4:11 satellite services 1 1 0
X4:12 internet reception 1 1 0
X4:13 easy access to applications 1 1 1
X4.:14 memory access 1 1 0
X4:15 internet price 1 1 1
X4:16 internet power 1 1 0
X4:17 internet reception 1 1 0
X4:18 internet facilities 1 1 0
X4:19 handphone prices 1 1 0
X4:20 telephone companies services 1 1 1
X4:21 bankin electronic platforms 1 1 1
X4:22 new electronic technologies 1 1 0
X4.:23 government control in ICT 1 1 0
X4:24 freedom of transfers 1 1 1
X4:25 e-mail services 1 1 1
Total 25 25 8

Source: Google (2023)

All Copyrights under Econographication Laboratory © 2023

Fig. 6: Final Results to Implement E-Wallet in China, Malaysia, and Gustemala

Source: Author
5. Conclusion

This paper concludes that EWI-Evaluator can evaluate the replacement of cash by E-Wallet
everywhere and anytime. This new model can let researchers and policy malers evaluate easily to
evaluate the implementation of E-Wallet using the level of the domestic integral development
economic, social, political, and technological. At the same time these four indices can help to
build the final indicator caked the Global Integral Development (GID Index) to recommend in
accept or considering or reject the implementation of the E-Wallet in any country. Finally, this
version can be the preliminary version to continue improving and extending the number of
variables to consolidate better results to evaluate the implementation of E-Wallet as currency and
standard payment sustem. Finally, the Central Bank Digital Currency (CBDC) is in fully controls
and manage the electronic wallet (E-Wallet). Finally, we concluded that this monetary transition
All Copyrights under Econographication Laboratory © 2023

can facilitate the calculation of the GDP, taxation, control of the laundering money and black
market, corruption, control of the money supply, demand money required, low interest rate
bands, sells discounts, totally avoid the printing of coins and bills, high control of inflation, ease
and cheap transactions, and more fast money rotation in the market. The main condition is that
the central bank fully control and manage the electronic wallet (E-Wallet) everywhere and
anytime.

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