As the SARB, we have kept a close eye on fintech developments as we appreciate the developmental potential they hold. There is, for example, sufficient evidence to suggest that the pursuance of common infrastructure such as digital identity platforms, or basic citizen demographics being housed digitally (such as MyInfo in Singapore), can promote progress towards electronic transactions and financial inclusion.
In my remarks today, I wish to consider the current debate on competitive devaluations and the peril of a currency war. Large policy spillovers in an increasingly integrated world economy naturally raise the possibility of inefficiencies. National policy-makers, who pursue a domestic objective and ignore the externalities they impose on other countries, may find themselves in equilibria that entail collective welfare losses.