As a step in this direction, MAS, together with the central banks of Brunei, Cambodia, Ghana and Kenya, and with support from Mastercard, has published a report on ‘Foundational Digital Infrastructures for Inclusive Digital Economies’. There are four foundational digital infrastructures. First, digital identity. A digital identity establishes confidence and trust at both ends of the digital interaction. It enables access to the realm of public and private digital services across different sectors; it promotes digital inclusion. A digital identity may be centralised or decentralised, provided by the public sector or private sector. How it is designed will depend on a country’s institutional and legal frameworks, digital literacy, and culture and attitudes towards issues such as privacy and security. 1/3  BIS central bankers' speeches  Second, authorisation and consent. To foster public confidence that digital transactions are safe and secure, we need mechanisms for individual consent to ensure that the use of data is properly authorised. These mechanisms must also ensure transparency in the use of data – that data will be used and shared in accordance with the purposes for which it has been provided and in a manner that is expected and understood by individuals. Third, payments interoperability. Some form of payment is integral to most digital transactions. To facilitate seamless payments in both digital-to-digital and digital-to-physical environments, we need common payment rails or networks to enable inter-operability across payment solutions. Fourth, data exchange.

Ravi Menon: Foundational infrastructures for an inclusive digital economy Opening remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the Launch of Report on Foundational Digital Infrastructures, 26 April 2021. * * * The rapid adoption of digital solutions has enhanced the economic and social well-being of millions of people around the world. But many of these solutions are not interoperable. Digital transactions are not seamless and we are not able to exploit the full efficiency benefits of digitalisation. It also means that the digital economy is not as inclusive as it should be. To create a truly efficient and inclusive digital economy, digitalisation must be end-toend. Digital innovation is not just about the number of patents or the sophistication of the algorithms. We must put people at the heart of innovation, by creating end-to-end digital solutions that will purposefully improve their lives. We need foundational digital infrastructures – systems that allow different users, different solutions, and different devices to seamlessly interact with one another. Foundational digital infrastructures will enable interoperable solutions and seamless digital services to reach more people and businesses, at lower cost and greater convenience. They will enable more pervasive digitalisation within and across economies. Just as physical infrastructures like railroads helped to advance the industrial economy, digital infrastructures will spur the growth of the digital economy. The public and private sectors must come together to co-create common digital infrastructures, and avoid the pitfalls of isolated technology solutions - ‘digital islands’ and ‘walled gardens’.