22nd Economix International Dialogue

“The Integration of Digital Finance into Monetary Systems”

I. INTRODUCTION
As we transition into a world without the grasp of the COVID-19 pandemic, the
effects that occurred in the wake of it still follows us into the present day. Multiple sectors
have seen rapid technological improvements in order to compensate for the remote nature of
lockdown, and many central banks have seen a shift towards the implementation of digital
currencies. The Global Findex 2021 database shows that more than two thirds of the adult
population receive their wages electronically, and over 76% have their own bank account.
40% of people in low to middle income countries have even made their first digital payment
since the start of the pandemic. This growth is driven by the increased convenience, security
and accessibility for the digitization of financial systems.

The digitization of the monetary system can encompass the usage of digital payments
and the creation of central bank digital currencies (CBDCs). Governments and central banks,
as well as organizations like the World Bank, are promoting the usage of these services in
order to provide connectivity and inclusion through easier regulations and policies. CBDCs
alone are capable of tracking every single transaction made by the populace, which can
enhance the impact governments can have on the economy. It also ensures that money can
remain a relevant unit of account, even after cash becomes obsolete. In Indonesia itself, the
central bank has started to push for the development of the digital rupiah by utilizing
blockchain technology. INDEF has stated that the widespread adoption of the QRIS system
has been put as the benchmark for the success of these CBDCs The 2025 Vision for Indonesia
Payment Systems wants to ensure the goals of streamlining central bank functions, pushing
for collaboration with private banking systems as well as fintech development to ensure
security and privacy of users. Countries like China and Sweden have been made as prime
examples to follow.

Despite these promising benefits, the digital finance sector still faces challenges and
shortcomings. There are serious risks in untethering our money into an intangible shape.
Serious economic downturn may prove to be difficult to handle as there isn’t a physical item
to hold value, it may well be just some numbers on a screen. Failure in adjusting to these
issues may also disrupt the global financial system as it undermines public trust in the central
banks’ ability to manage the country. This innovation needs to be balanced with consumer
protection as it is even easier to directly change the money that we hold. Cybersecurity will
need to be up to standard in order to prevent such attacks. With all this happening, more and
more unbanked people will find it significantly harder to adapt to this digitalization, and may
even find themselves unable to pay for their needs. This is why it is imperative that central
banks can not only foster digital growth, but also ensure that it is equitable.

To conclude, our International Dialogue with the theme “The Integration of Digital
Finance into Monetary Systems” aims to discuss the incorporation of digital finance into our
monetary system and the implications of it through the perspectives of the government,
financial institutions, private companies, and other important stakeholders. Central banks are
now opting for digital integration in order to embolden their functions and to improve their
controls over the nation’s money supply, monetary policy, and financial system stability. The
usage of central bank digital currencies, digital payments, and digital banking may prove to
be a challenge however, when taking into consideration the risks of cybersecurity, and
contingencies during times of economic downturn. This session will discuss the significance
of digitizing central bank functions whilst navigating the challenges that may arise.

Through a moderated session, each speaker is given the opportunity to articulate their
unique perspective, facilitating a productive discussion to identify common ground on the
matter at hand.

II. PURPOSE OF SEMINAR

By attending the Economix International Dialogue, the attendees are expected to be able to:
● Explore the impact and implications of the increasing role of digital finance into the
monetary system towards money supply and monetary policies
● Acquire substantial knowledge of the risks and obstacles faced in furthering the
integration of digital finance along with the strategies to overcome them
● Gain understanding of the significance of digital finance for the future of the
financial system in entirety through diverse perspectives
● Learn the collective outlook of digital finance within the framework of the global
and national economy
III. TRIGGER QUESTIONS
In the Moderated Session, speakers are expected to answer these questions:
● What is the urgency to push for the digitization of monetary systems? Given the
relative recency and novelty associated with digitization, what are the potential risks
and unintended consequences of rushing this agenda? What are the primary drivers
behind its growth?
● How can central banks effectively leverage digital finance to implement monetary
policy and manage economic stability? What are the differences in the policies
prioritization given the added control that these innovations may provide?
● As digital finance becomes increasingly integrated into global monetary systems, it
raises complex ethical questions regarding access, privacy, and economic equity.
What ethical considerations should guide the development and implementation of
digital finance policies? How can we ensure that the implementation of digital
finance supports equitable and inclusive economic growth?
● Digital currencies have the capacity to substitute bank deposits as the main form of
money holding and as such, how will it impact the roles of traditional private banks?
How will governments deal with the pushback many banks will experience as a
response? Are there plans for collaboration between traditional financial institutions
and the newfound digital services?

Note: Speakers are expected to deliver the materials and speak in English during the
seminar. Speakers are also expected to actively participate in the questions and answers
discussion.
IV. INTERNATIONAL DIALOGUE FLOW
The 22nd Economix International Dialogue will be a hybrid event with both an onsite
audience and online streaming via YouTube, lasting 3 hours and consisting of several
sessions. It will begin with the Opening Ceremony, a Keynote Speech, then the Moderated
Session, and finally the Question and Answer Session.

The Moderated Session will be an 80-minute moderated discussion between speakers

based on trigger questions about this year's theme. Speakers will be expected to participate in
a discussion with other speakers, which will be moderated by a moderator. It will then be
followed by a 20-minute Question and Answer Session to allow the audience to participate
and get clarification on the topic at hand.

V. RUNDOWN

TIME AGENDA

13.30 14.00 Open Gate

14.00 14.14 Opening

14.14 14.25 Welcoming Speech

14.25 14.35 Opening Remarks 1

14.35 14.46 Opening Remarks 2

14.46 15.01 Keynote Speech

15.01 15.06 Introduction of Moderated Session

15.06 15.20 Trigger Question 1

15.20 15.40 Trigger Question 2

15.40 16.00 Trigger Question 3

16.00 16.21 Trigger Question 4

16.21 16.42 Q&A Session

16.42 16.47 Certificate Distribution

16.47 17.00 Closing

VI. EXPECTED PARTICIPANTS
The expected number of participants is 300 participants onsite and more than 2,500
online viewers on Youtube. As we are bringing a topic that is relevant to many countries, we
anticipate that viewers will come from all over the world. Furthermore, additional viewers are
expected from a variety of backgrounds, including professionals and researchers interested in
the issue of integrating digital finance into monetary systems.

VII. DATE AND TIME OF SEMINAR

The 22nd Economix International Dialogue will be held on:
Date : Monday, 2 September 2024
Time : 14.00 - 17.00 GMT +7 (Western Indonesian Time)
Place : Auditorium Soeria Atmadja FEB UI