Concept and Expectations
The Parliamentary Network on the World Bank and IMF together with the World Bank Group and International Monetary Fund are proposing a 90-minute Parliamentary Dialogue Series focusing on the future of finance. This timely event will take place in the backdrop of the the increasing use of digital money, cryptocurrencies and myriad innovative technologies of finance, all of which pose both opportunities and challenges to the people, governments, central banks, with major public policy and regulatory implications.
The goal of the Parliamentary Dialogue Series is to increase transparency and dialogue between the World Bank, IMF, and parliamentarians. During this edition, parliamentarians are invited to debate the issue of digital money and its potential to transform the financial sector by promoting financial inclusion and intermediation, creating advantages for domestic payment systems, increasing competition, advancing access to money and efficiency in payments, as well as diminishing transaction costs, thereby improving transparency in the flow money.
Recent developments in the global financial market reveal that while promoting financial inclusion through digital technologies and currencies can be a key enabler for reducing poverty and increasing prosperity, their development should be accompanied by a wide range of legislative measures and public policies aiming to protect the people and create awareness about their inherent benefits and risks.
Given the key role the private sector plays in advancing technology in this field, the question will be explored of what legislators can do to create an enabling environment for continuous advancement that does not perpetuate inequality, especially in regards to women.
This session will aim to:
- Increase awareness among Parliamentarians of the potential of digital currencies to boost inclusion in the financial sector, as well as to reduce poverty and increase shared prosperity.
- Provide an overview of legislation and public policy needed to make sure these instruments are used in a manner that maximizes social and economic benefits.
- Share best practices in domestic programmes from around the world.
Background
Since 2010, more than 55 countries have made commitments to financial inclusion, and more than 60 have launched or are developing national strategies. Today, boosting financial inclusion ranks high across emerging market and developing economies as a motivation for issuing central bank digital currencies. Digital money has the potential to transform the financial sector. Emerging markets and lower-income countries stand to gain the most from this shift.
Broad and inexpensive access to digital money and phone-based transactions could open the door to financial services for the 1.7 billion people worldwide without traditional bank accounts and create opportunities for trade facilitation and market integration. But with any opportunity comes risk. The passage to this new world could exclude those on the other side of the digital divide. It also creates potential for fragmentation, currency substitution, and loss of policy effectiveness. The transition must be well managed, coordinated, and soundly regulated.
Introducing digital currencies requires a delicate balance between developments on the design front and on the policy front. Getting the design right calls for time and resources, and continuous learning from experience, including shared experiences across countries. Policy aspects involve developing new legal frameworks, new regulations, and new case law. As a result, parliamentarians are key to the implementation and the regulation of digital currencies and technologies to make sure they reach their intended objective of promoting transparency and financial inclusion. In this context, this event will look at creating awareness concerning the use of digital currencies, as well as best practices regarding their regulation by promoting knowledge exchange and shared experiences among legislators from around the world.
Contacts
Gergana Ivanova, Parliamentary Network: givanova@parlnet.org
Kofi Kafu Tsikata, World Bank Group: ktsikata@worldbankgroup.org
Tilla McAntony, IMF: tmcantony@imf.org
About the Parliamentary Network
The Parliamentary Network on the World Bank and International Monetary Fund (the PN) is a platform for parliamentarians from World Bank and IMF member countries to advocate for increased accountability and transparency in development cooperation. The PN has over 1000 members in Africa, Asia, Europe, and the Americas, supported by its international secretariat and guided by its Board, currently made up of nine (9) Members of Parliament. The Rt Hon. Liam Byrne MP, UK is the current Chair of the Network. Membership is open to all parliamentarians serving a current mandate.
The PN through its members and events creates a space where parliamentarians can engage with the World Bank and IMF in a transparent manner and participate actively in shaping the international development agenda. Through its work, the Network empowers MPs to take an active part in development programmes and policies of both institutions. Its mission is to provide a platform for knowledge exchange between parliamentarians and the World Bank and IMF with the goal of rendering legislators better equipped to carry out their oversight functions; actively contribute to the work of the World Bank and IMF; and provide informed feedback and invaluable insights to better tailor World Bank and IMF programmes and initiatives to those the institutions aim to serve.