mr latter looks at the implications of e - commerce for the banking and monetary system in hong kong speech by mr tony latter, deputy chief executive of the hong kong monetary authority, at a conference on china and the new millennium : wto, entrepreneurs and new technology for global trade, held in nansha, guangdong province, people ’ s republic of china on 24 march 2000. * * * the internet has quite suddenly multiplied by a remarkable degree the number of potential suppliers and customers with whom we can do business, and the number of avenues through which we can perform financial transactions. this opens up all sorts of opportunities, but it also attracts all sorts of warnings - about needing to know the identity of those with whom we are dealing ; about needing somehow to satisfy ourselves, remotely, as to the quality of the products or services on offer ; about needing to be sure of the financial standing of counterparties, be it their ability to pay or to provide credit which concerns us ; and so on. speaking as a central banker, i begin to have a specific interest in the development of e - commerce at the point where payment has to be made for the goods or services that are traded via the internet, or where people deposit money into internet accounts. but i also have a broader interest relating to the overall stablity and integrity of the financial system. the internet undoubtedly brings us the prospect of greater choice and efficiency in financial deals, but it also sparks certain concerns. these fall under two headings : consumer protection, with worries about scams, transparency, security, accountability, legal recourse, and so on ; and systemic stability, with questions as to whether the financial system might become more vulnerable to crisis as a result, for example, of a major technical failure or of a massive herd movement of money in a particular direction. this is a vast subject, so i need to narrow down my focus today. i want to discuss some of the issues which businesses or individual members of the public may face in relation to electronic money on the internet. and i then want to discuss some points which a central bank has to address in the monetary policy context when confronted with electronic money. in fact there are two types of electronic money : that which is held on the internet and that which is held in stored - value cards. multi - purpose stored - value card schemes have been slow to become established, despite quite lengthy pilot projects in a number of countries. hong kong was nevertheless one of the first places to introduce regulations

reserve bank of fiji ladies and gentlemen, various country studies have shown that when people are financially literate and have access to appropriate financial services there is greater potential for socio and economic development and opportunities for people to work their way out of poverty. as i have mentioned throughout this speech, much has already been done by the stakeholders here today in our drive towards full financial inclusion. we can perhaps give ourselves a little pat on the back. however, the momentum must continue. and this is why we are all here! we each still have a part to play. the reserve bank pledges its ongoing support to continue the role we have taken on. a role which we felt so strongly about that it required us to create a new department in order to facilitate the need that was evolving. in addition to what we have been doing, the bank is also currently reviewing and developing an appropriate consumer protection framework mechanism to provide minimal standards both for consumer empowerment and market conduct. to this end we are working with other central banks in peer learning and sharing of lessons learnt and best practices. we will continue to budget for and facilitate and promote financial literacy during the financial inclusion and microfinance expositions that we organise around the country. we encourage our fellow stakeholders to advocate this important issue and are monitoring and collating data to see where this can be effectively used. conclusion ladies and gentlemen, the theme for the workshop is an apt one : “ financial literacy and competency for all ”, clearly with the emphasis on the all. the focus of this workshop is to develop and ensure that there is a policy in place at national level to support and empower both consumers and stakeholders. it is about empowering and making available necessary information, knowhow and tools, for all citizens to be able to make informed financial decisions. this is particularly so for vulnerable groups, such as the bis central bankers ’ speeches poor and underserved. this has to be a national agenda. every fijian must take ownership of this. our decisions today impact the later generation and it is essential that this is taken seriously. learning never stops. knowledge is accumulated over time with each passing day. what we deliberate and strategize over the next one and a half days will impact the lives of each and every individual in fiji. take a moment to realize this fact that the decisions made today will make a change. let us make it happen! with these words, i declare this workshop open and wish you all the very best in your deliberations