Subject: Address to the Fintech Community
Dear President Tharman, distinguished guests, and fellow enthusiasts of the Fintech world,
It is truly an honour for me to once again be in the dynamic city of Singapore and participate in this remarkable forum that convenes the brightest minds in the realm of digital finance.
Singapore, a hub of Fintech innovation, provides the perfect backdrop for discussions on the future of digital finance and its impact on the global financial landscape. The evolution of Fintech has already transformed the financial sector, increasing accessibility for numerous businesses and individuals who previously had limited or no access.
Representing the IMF in this thriving community fills me with immense pride, as I follow in the footsteps of my predecessor, Christine Lagarde. Five years ago, she delivered an impactful speech at this very forum, urging policymakers to embrace the digital revolution and explore the potential of central bank digital currencies (CBDCs) and Fintech.
Today, I am here to provide an update on the progress we have made on this digital finance journey. I have four key messages to share. Firstly, many countries have embarked on exploring CBDCs and are in the process of developing regulations to govern the evolution of digital money. Secondly, we are still navigating uncharted waters with ample room for innovation and an air of uncertainty surrounding the potential use-cases of CBDCs. Thirdly, the public sector should maintain its preparedness to implement CBDCs and related payment platforms in the future. And finally, these platforms should be designed to facilitate cross-border payments, including those involving CBDCs.
As we navigate the high seas of digital finance, we must approach this journey with boldness and conviction. We can draw inspiration from the entrepreneurs, business leaders, and investors, who are the fearless sailors of the Fintech world. They bravely navigate the unpredictable waves and winds with unwavering determination.
The adoption of CBDCs is an ongoing process, with approximately 60% of countries currently exploring the possibilities. CBDCs have the potential to replace traditional cash in economies that currently face challenges in distributing physical currency. Furthermore, they have the capacity to enhance financial inclusion in regions where a significant portion of the population does not have access to traditional banking services.
It is crucial that countries remain open to the potential deployment of CBDCs. The benefits of CBDCs will be realised based on the evolution of the payments ecosystem, the response of the private sector, and the advancements in technology. However, effective deployment of CBDCs will require strategic policy decisions and a collaborative effort from public and private sector stakeholders.
In this spirit, I am pleased to announce the launch of a CBDC Handbook, which will be available on the IMF website. This comprehensive resource is designed to gather and disseminate knowledge on CBDCs for policymakers across the globe, supporting their journey into the world of digital finance.
Furthermore, it is imperative that we lay the groundwork for efficient cross-border payments, which continue to pose challenges in terms of speed, cost, and accessibility. By improving the efficiency of cross-border payments, we can facilitate the flow of capital and enhance the growth potential of small businesses and households across borders.
In conclusion, let us remain steadfast in our commitment to the digital finance voyage. The potential benefits of a more inclusive international financial system are undeniable, and the journey itself holds immeasurable value. Together, let us continue to explore new horizons and bring fresh perspectives to the challenges facing the world of digital finance.
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER:
Huong Lan Vu
Phone: +1 202 623-7100
Email: [email protected]
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