The Electronic Money Directive (EMD) is a regulatory framework established by the European Union to govern the issuance and management of electronic money. It aims to create a safe and secure environment for electronic transactions, ensuring that consumers are protected and that the market remains competitive. The directive outlines the requirements for companies that issue electronic money, including licensing, capital requirements, and consumer protection measures. Under the EMD, electronic money is defined as a digital representation of fiat currency that can be used for payments. This includes various forms of digital wallets and prepaid cards. The directive facilitates the growth of innovative payment solutions while ensuring that users' funds are safeguarded and that service providers operate transparently.