Policy Framework for Leveraging Digital Financial Services to Respond to Global Emergencies – Case of COVID-19
Categories : Regulation and Payment System Governance, Regulation of Digital Financial Services
The global pandemic COVID-19 and the ensuing emergencies have reinforced the urgency of using Digital Financial Services (DFS) to preserve the functioning of financial systems and the security of people during the period of declining demand, reduced supplies, and tightening credit terms.
Digital payments, particularly when accompanied by digital financial Infrastructure and enabling regulations, help governments quickly and securely make cash transfers and other socio-economic benefits in the form of financial support.
This policy framework from AFI aims to provide policy guidance to regulators within the AFI network and beyond, in developing relevant policy/regulatory responses to mitigate the effects of global pandemics by leveraging on DFS. Although this guidance is immediately relevant to the current COVID-19 outbreak, it is also applicable for other emergencies, including natural and manmade disasters such as cyclone, earthquake, conflicts, forced displacements, etc.