Digital Money: The Rise of the Entrepreneurial State

Citi Public Digital Money | The Rise of the Entrepreneurial State | March 2022 7 Citi Public Digital Money | The Rise of the Entrepreneurial State | March 2022 6 The time is right for countries to rise to the occasion and drive digital money readiness in their economies by leveraging these favorable trends. However, the road to digital transformation isn’t straight forward. There are numerous challenges such as a lack of critical digital infrastructure that has not kept pace with the growing demand for internet connectivity, a digital divide that can prevent the less skilled from the adoption of emerging technologies and concerns around trust that have the potential to block innovation and prevent the digital revolution from unleashing its full economic potential. Holistic Digital Policy — a key tool for countries to drive digital money readiness Driving readiness thus requires all the economic stakeholders — Governments, Corporates, Financial Institutions and Households (the larger society) to rally around a common vision. Governments naturally have a significant role to play in developing and articulating a holistic digital policy to align all these economic stakeholders towards a common digital vision. 11 Figure 1: Citi Digital Policy, Strategy and Advisory Framework Households Digital Consumption Models changing traditional businesses Digital Driven Financial Inclusion People at the center Digital Working Model fueling digital collaboration Demand For ESG Friendly Services Financial Institutions Financing Of New Business Models Platforms, ecosystems Digital Money defining future for governments and corporates Instant Payments transforming consumer and business payments Platform Model Digital ecosystems encouraging platform play Incorporating ESG into Digital Strategy Governments Policy Support For Technology AI, data, nanotechnology Digital Infrastructure Smart cities, 5G Digital Identity foundation for building next gen households Digital Payments Payment solutions for inclusive growth Policy Support For ESG Corporates/Businesses Commercialize Emerging Technologies AI, data, robotics, 3d printing, genomics Consumer And Healthcare building solutions accessible at fingertips (D2C, mHealth, etc) Telecom And Technology transforming the future of work, providing partnership opportunities Energy moving towards Energy as a Service model Other Industries embracing technology in their own context Incorporating ESG into Digital Strategy DIGITAL FRAMEWORK Source: Citi Digital Policy, Strategy and Advisory Analysis