A joint study by the Cambridge Centre for Alternative Finance (CCAF) and the World Bank has revealed that COVID-19 greatly accelerated Fintech regulatory innovation developments. Dubbed ‘Global COVID-19 Fintech Regulatory Rapid Assessment Study’, the report was released on Oct 28 as part of an effort to empirically equip regulators and central banks in the digital currency era. Notably, the study highlights that increased digital payments activity did not result in a similar spike in crypto exchange use; however, these platforms also grew by smaller percentages.
The study’s results are based on responses from 118 central banks and financial regulators in 114 jurisdictions, from both developed and developing economies. Generally, there have been increased efforts to further accelerate the current regulatory innovations and introduce new initiatives to further support the burgeoning sector. According to the study, 72% of the sample has increased or debuted digital ecosystem initiatives, while 58% have already pivoted on RegTech/SupTech focused policies. Innovation offices are also on the rise, with 56% of the respondents noting progress.