3 Yet amid this cautious optimism, we should acknowledge the continued unevenness in the strength of the expansion across regions in the global economy, as well as the persistence of policy uncertainties, which will weigh on firms’ long-term spending commitments. We are also confronted with the seeming rise of nationalism and growing populism which can have unpredictable effects on policies and growth. Against this backdrop, the uncertainty over trade policies and the future of the multilateral trading system is another area of concern of trading nations in Asia, as it comes at a time when important underlying structural shifts in global production and trade arrangements are already taking place. 4 In the financial sector, the advent of FinTech – driven by unprecedented mobility, connectivity and computing power – possesses the potential to fundamentally change the way intermediation takes place in the financial sector. 5 Indeed, it seems that continuous shifts and unrelenting changes are the defining characteristics of the future economic and financial landscape. Finding Opportunities amidst Uncertainty 6 While some degree of uncertainty is inevitable in this environment, there remain several broad trends which will unfold and present opportunities which Shanghai and Singapore institutions can leverage together. 1/3  BIS central bankers' speeches  7 First, China’s future direction in financial sector deepening and liberalisation is clear. President Xi Jinping announced at the G20 Summit last year that China would continue with efforts to make the RMB an international currency and further internationalize China’s financial sector.

Third potential impact: the launch of a CBDC could also raise questions related to modalities of access to central bank balance sheet. - Depending on its attractiveness and detailed specifications, a CBDC could trigger a demand from financial actors which usually do not have access to central bank money (money market funds, investment funds, insurance companies …) to be able to settle in CBDC. It would in particular be the case in a broader wholesale CBDC access scenario. The remuneration of the CBDC held by these financial actors – in case access were to be granted – would also matter for monetary policy implementation, as it would play the role of a ceiling for these institutions on the money market. - Beyond these settlement and detention aspects, expanding the counterparty framework (i.e. for central bank refinancing or asset purchases operations) as a response to the implementation of CBDC does not strike me at this stage as being particularly useful nor necessary. In any case the usual requirements related to counterparty eligibility criteria, including financial soundness assessment and supervision, would need to be taken into account. To conclude these introductory remarks, let me stress three points: - Digitalization is a major supply/technology shock, whose implications are multifaceted, and which have been intensified and accelerated by the Covid crisis - As central banks, in the context of our monetary and financial stability mandate, we have a role to play to make sure that digitalization becomes a blessing and not a curse.