Insights
Asia’s shift beyond the dollar
From local currency trade and gold accumulation to CBDCs and cross-border payment corridors, de-dollarisation in Asia is unfolding steadily and strategically. The region is taking steps toward a gradual shift to a multipolar currency landscape to secure greater financial sovereignty, relying less on the US dollar.
Taiwan’s big ambitions
Taiwan’s big ambition as Asia’s Next Asset Management Hub
Taiwan is positioning itself as a leading asset management center in Asia, joining Japan in a regional race to attract global investment. With bold regulatory reforms and market-opening initiatives, Taiwan has gained strong momentum, but significant challenges still lie ahead in its quest to become a top-tier financial hub.
Spotlight on sovereign wealth funds
There are now 33 state-owned investment funds in Asia, overseeing US$5.4 trillion of assets collectively. It’s not just the developed nations that have formed wealth funds. Less developed ones have followed suit, and some of them have run into controversy.
Asian CBDCs: in search of added value
Worldwide, 130 countries representing 98% of global gross domestic product, are now exploring CBDCs. But thus far, only four developing countries have introduced CBDCs but the adoption rates have been disappointing. Asian countries are experiencing similar challenges.
Time for an Asian Monetary Fund?
The idea of creating an Asian Monetary Fund is resurrected as nations reconsider the downsides of over-reliance on the US dollar.
Asset tokenisation makes inroads in Asia
Asset tokenisation is making inroads into private assets and over-the-counter financial products in Asia. However, it’s still early days and will require the financial industry to work together to address a number of key challenges to gain industry scale.