My talk on The Economist Fintech virtual event

TL;DR

The speaker discusses key elements for building resilience in financial markets, including the rise of stable coins and central bank digital currencies (CBDCs), the focus on universal basic income (UBI) schemes, and the importance of partnerships between the public and private sectors.

Transcript

uh last but not least um our final speaker for this panel and for our event is effie pilarino who is the global fintech uh influencer uh based in switzerland uh i believe and i think you've got some slides as well effie yes thank you thank you thank you thank you for the introduction and thank you the economist of southeast europe for the invitatio... Read More

Key Insights

• 🐕‍🦺 Weaknesses in payment systems have been exposed during the crisis, emphasizing the need for resilient financial services.
• 🤑 Programmable money, such as stable coins and CBDCs, is gaining strategic importance for building resilience globally.
• 🏙️ UBIs are being considered as a tool for economic resilience, with various countries and cities exploring their implementation.
• 🐕‍🦺 Partnerships between the public and private sectors are essential for extracting value and driving innovation in financial services.
• 🧑‍💻 The super app model in the East and the acceleration of gov tech and civic tech in the West are regional trends in building resilience.

Questions & Answers

Q: What are stable coins and why are they considered important for building resilience in the financial system?

Stable coins are fiat-backed digital currencies, often issued by central banks, that provide stability and programmability. They enable efficient cross-border payments and can reduce reliance on traditional banking systems, making them crucial for building resilience in financial services.

Q: How are governments and central banks using CBDCs for wealth distribution and transfer during crises?

CBDCs, being programmable money, offer a viable solution for distributing and transferring wealth during crises. For example, in the US, CBDCs like stable coins are being considered to distribute financial aid. However, implementation strategies may vary across jurisdictions depending on their specific aims.

Q: What is the role of universal basic income (UBI) schemes in building resilience in the economy?

UBIs are gaining interest as a measure for economic resilience. By providing a regular income to all citizens, UBIs can help alleviate financial stress during crises, stimulate the economy, and ensure a basic standard of living for everyone.

Q: How are partnerships between the public and private sectors contributing to building resilience in financial services?

Partnerships between the public and private sectors are crucial for extracting value and driving innovation in financial services. Collaborations with fintech companies, gov tech initiatives, and civic tech organizations can enhance the efficiency, accessibility, and effectiveness of financial services.

Summary & Key Takeaways

• Payments systems, especially during the crisis, have revealed weaknesses and highlighted the need for resilient financial services.

• Programmable money, such as stable coins and CBDCs, are being recognized globally as a strategic tool for building resilience in the economy.

• The rise of interest in UBIs and the importance of partnerships between the public and private sectors are additional elements for building resilience.