On December 6, 2021, the 41st Meeting of the Southeast Asian Central Banks Research and Training Center (SEACEN) Board of Governors (BOG) and the 57th SEACEN Governors’ Conference/High-level Seminar with the theme of “Digitalization of the Financial System - Implications for Central Banks” were organized virtually under the chairmanship of Madam Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV), current Chairwoman of the SEACEN BOG .
At the Meeting of the SEACEN BOG, the Executive Director of the SEACEN Centre delivered a report to the Governors on the implementation results of the SEACEN Centre's Strategic Plan for the period of 2020 - 2022. The Governors had a robust discussion and adopted the recommendations made by the SEACEN Executive Committee (EXCO) on training programs, researches, conferences, seminars and the budget for the 2022 fiscal year, as well as other governance and staffing matters of SEACEN. Also at the Meeting, the Governors made high evaluation for the great efforts of the SEACEN Centre, especially the Executive Director, in having effectively conducted the training and research activities in the virtual format in the context of the complicated developments of the COVID-19 pandemic.
In her conclusions at the Meeting, Governor Nguyen Thi Hong expressed her sincere thanks and high appreciation to the former SEACEN BOG Chair, Ms. Hajah Rokiah binti Haji Badar, Governor of the Central Bank of Brunei Darussalam, for her excellent accomplishment of the role of SEACEN BOG Chair in 2021. In addition, Governor Nguyen Thi Hong also acknowledged the active cooperation among SEACEN member central banks in the implementation of the activities and programs initiated by SEACEN, thereby helping to enhance the quality and the practicality of the SEACEN Centre's training and research activities. As SEACEN BOG Chair in 2022, Governor Nguyen Thi Hong committed that she and the SBV would coordinate closely with member central banks to further promote SEACEN to become a prestigious regional research and training center. The SBV Governor hoped that the COVID-19 pandemic would be controlled in the early future, so that the trainers and trainees of SEACEN, as well as its practitioners and researchers can physically meet and participate in training and research activities.
SBV representatives attend the Meeting
Consecutively after the Meeting, Governor Nguyen Thi Hong also chaired the 57th SEACEN Governors’ Conference/High-level Seminar. Attending the Conference were Governors and Executive Directors of the SEACEN member Monetary Authorities, and the General Manager of the Bank for International Settlements (BIS), the Governor of the Reserve Bank of New Zealand, SEACEN Managing Director, together with several prestigious specialists from universities and organizations around the world.
In her opening speech, Governor Nguyen Thi Hong emphasized the benefits and challenges of currency digitization, especially impacts of the introduction of a central banks' digital currency (CBDC) on the central banks' monetary policy management. Beside currency digitization, digital payment has also been developing rapidly in the recent years. Currently, digital payment has a great opportunity to expand, develop and take the leading position in the financial service sector, and has the potential to become a platform for the emergence and robust development of the digital economy, thereby acting as a catalyst for the economic growth, innovation and financial inclusion.
Governor Nguyen Thi Hong speaks at the Conference
Within the framework of SEACEN cooperation, the SBV Governor expressed her wishes that the central banks would strengthen their cooperation to conduct in-depth studies and promptly propose policy recommendations on the digitalization process of the banking industry. As a research and training center for Southeast Asia, SEACEN plays an important role in implementing research projects, conducting training courses, seminars and policy dialogues on the emerging issues of the region.
At the Conference, speakers and senior managers from the SEACEN member central banks and the BIS shared information and views on the digitalization process of the financial system, focusing on: (i) Current state of the digitalization of currencies and payment systems and the future of money and finance in the context of a rapidly evolving digital economy; (ii) Issues related to the design and intention to issue a CBDC, as well as the responses of the central banks and the regulatory frameworks to ensure the monetary and financial stability; and (iii) How central banks respond to the new future of money and finance.
Participants at the Conference.
The participants at the Conference shared views that the COVID-19 pandemic has accelerated the digitalization of financial services. Structural changes have both promoted the innovation and led to an urgent requirement for central banks to develop appropriate regulations and legal frameworks to govern the new operations to protect the clients' interests as well as to ensure the safety and security of the payment systems and the stability of the financial systems. Faced with the above emerging challenges and issues, SEACEN member central banks have pledged to cooperate more closely in policy and information exchange, and to come up with effective solutions for the region. The Governors also expressed their wishes that the SEACEN Centre would further promote its existing strengths in research and training to explore and find effective solutions in this important area.
Le Hang