It is fairly extreme to assume that there would be a total ‘sudden stop’ of capital flow, as occurs periodically for some emerging market countries operating under fixed exchange rates that become unsustainable. In all Australia’s experience under the floating exchange rate over the past two decades, that has never occurred.
However, to reap the benefits of the growth of digital financial services in the post-COVID era, it will be necessary to close the digital divide at both national and international level by ensuring equal access to digital infrastructure as well as promoting financial and digital literacy.