IMF – Singapore Regional Training Institute
In collaboration with the IMF Monetary and Capital Markets and Asia and Pacific Departments
The Asia and the Pacific region is at the forefront of experimentation and the adoption of digital technologies. In the area of finance, they range from private payment systems to central bank digital currencies, and to technologies to foster financial inclusion. Efforts are also under way to use digital technology to analyze publicly available data in real time as an additional input into macroeconomic policy making.
This peer-learning series will share information about emerging good practices drawing on in-depth analysis of individual country cases, and highlight emerging IMF capacity development in this fast-growing area. The series focuses on (i) private payment systems; (ii) central bank digital currency (CBDC); (iii) fintech and financial inclusion; (iv) digital money cross-border flows; (v) capital flow management in a digital age, and (vi) digital banking. The next event is Fintech and Financial Inclusion and the case of Bangladesh.
Fintech and Financial Inclusion and the Case of Bangladesh
Historically, Bangladesh’s financial inclusion strategy has centered on microcredit. Efforts have since shifted to financial inclusion that focuses on access to bank accounts and credit for underserved groups with the objective of poverty reduction and promoting economic growth. Under its current financial inclusion strategy (2021-26), Bangladesh aspires to implement a concrete action plan which includes a set of twelve goals consisting of sixty-nine targets that have been crafted to foster future developments in financial inclusion. In these efforts, leveraging Fintech to build a digital ecosystem to make financial services more accessible for the population is being envisaged. In addition to the Governor of the Bangladesh Bank and other government officials and private sector representatives, the event will benefit from the experiences with digital money from the Governor of the Bank of Korea and the Governor of the Central Bank of Kenya, as well as IMF management and staff. The event is open to the public and to the media.
Central Bank Digital Currency and the Case of China
Central Bank Digital Currency (CBDC) has become an important topic globally, generating broad interest among policy makers, investors, and the public alike. A number of countries in Asia and the Pacific in turn are at the forefront of experimentation. China, for example, has been doing research on CBDC since 2014 and since then launched several pilots; China’s e-CNY testing now involves commercial banks and internet companies. This event will hence provide an overview of CBDC developments and focus on experiences and lessons from China. The event will bring together the IMF and People’s Bank of China and Hong Kong Monetary Authority staff, as well as academics and international experts. This is a closed-door event.
Already before the pandemic, in several countries, including in Asia, the expansion of digital payments had become an important driver for financial innovation and inclusion. The COVID-19 pandemic has accelerated this process. In India, the rapid expansion of digital payments has been facilitated by a strong digital infrastructure (including Aadhar and UPI) and a supportive policy environment for advancing digital financial services. At the same time, the authorities are taking advantage of fintech innovations to further improve financial sector infrastructure, digital money cross-border flows, as well as to expand access to mobile financial services.
This event, which will kick off a regional series, will provide an overview of latest developments in digital payments, with focus on lessons from India, as well as look to a future with a significant role for Central Bank Digital Currencies (CBDCs) in digital payment systems. The event will bring together IMF and Reserve Bank of India officials as well as Indian and international experts.
Source: International Monetary Fund