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This article argues that the digital transformation of finance is being driven by the quests for (i) efficiency, (ii) financial inclusion, and (iii) sustainability. These in turn are central to regulatory approaches to digital finance. We argue that - rather than a trilemma - the three factors in fact form a mutually reinforcing trifecta which can be supported and reinforced via appropriate policy, regulation and infrastructure. These three factors are necessarily intertwined: financial inclusion underpins long-term oriented economies, and unsustainable outcomes generate numerous risks for finance.
Les auteurs de cet article font valoir que la transformation numerique des finances est motivee par la quete (i) defficacite, (ii) dinclusion financiere et (iii) de durabilite. Ces notions sont a leur tour au cœur des demarches reglementaires en matiere de finance numerique. Nous soutenons que plutot de constituer un trilemme, les trois facteurs forment un trio gagnant qui renforce tous ses elements et qui peut etre soutenu et renforce au moyen de politiques, de reglements et dinfrastructures appropries. Ces trois facteurs sont necessairement etroitement lies : linclusion financiere soutient les economies visant le long terme et les resultats qui ne sont pas durables creent de nombreux risques en matiere financiere.
1. INTRODUCTION
Over the past decade, financial policymakers and regulators have had to respond to the digital transformation of finance, today encapsulated in the term financial technology or FinTech. At the same time, sustainable development is perhaps the highest priority shared global objective, and increasingly centres upon the United Nations Sustainable Development Goals (UN SDGs) in tandem with the UN Framework Agreement on Climate Change (Paris Agreement). The UN SDGs provide a framework of detailed objectives and criteria for pursuing sustainable development, while the Paris Agreement focuses on agreements to limit global warming. Central banks and financial regulators across the world are considering how to enhance sustainable development through sustainable finance in the context of their wider mandates for financial and economic development, monetary and financial stability, financial integrity, and consumer protection.
Sustainable finance and FinTech are now major policy foci of most regulators, as demonstrated by a range of regulatory initiatives promoted by, inter alia, the United Nations (UN), the European Union (EU) and its Member States, the United Kingdom (UK), China and a range of...