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The payment system accumulates through an interbank fund transfer system, banking procedures, and a set of instruments that guarantee the circulation of money (Hancock & Humphrey, 1997). The theory of money expressed by Fisher is very striking and different from Marx’s. Marx only emphasizes monetary developments as contemporary capitalism. However, Fisher on the form of money and the function of money in a certain amount (as cited in Ivanova, 2020). The flow of electronic and digital transactions has continued to innovate over the past decade. An important point of this research is to identify electronic transactions and digital transactions against the velocity of money (VoM) in Indonesia. Fisher’s theory of money is applied to this study. Through a quantitative approach, time-series data for 2009–2019 was collected from the Bank of Indonesia and BPS-Indonesia. Multiple linear regression analysis is useful in interpreting the data. As a result, we find electronic transactions measured by credit cards appear to have a negative effect on VoM, but the impact is significant. Meanwhile, debit cards actually have a positive and significant effect on the value of VoM. Interestingly, other empirical results explore the relationship of digital transactions represented by e-money with VoM, where the effect is negative and insignificant. This finding is also very relevant to banking efforts to harmonize and adopt advanced technology in the financial system
Roy et al. (Fri,) studied this question.