How do we secure digital payments when social media is the new vector for fraud? How can Asia unlock the trillions needed for nature-based solutions?  Will the future of money be printed by central banks (CBDCs) or coded by private tech giants (stablecoins)?

The following six pivotal articles address critical issues in the financial ecosystem, spanning the regulatory landscape of digital assets and CBDCs, the fight against illicit finance with a focus on Asia, and the urgent mobilisation of climate capital. 

Prepared by senior Asian policymakers and regulators as part of the Temasek Foundation WMI Finance & Markets Programme “Leading in a Future Economy” Projects and published in the World Scientific Annual Review of Fintech (Vol. 3, 2025), these articles provide a comprehensive roadmap for policymakers and financial leaders navigating the complexities and rapidly evolving issues in the financial industry.

Brief Summary of Articles

Article 1 –  Leading in a Future Economy Project: Fostering an Enabling Environment for Climate Finance in India

Focus: Mobilising the Indian financial sector for national climate goals.

This article focuses on India which faces the dual challenge of sustaining rapid economic growth while mitigating severe climate vulnerability. It analyses the specific role of the Indian financial sector in meeting the country’s Nationally Determined Contributions (NDCs).

Key Findings & Recommendations:

• Sectoral Reliance: The article argues that current flows are heavily skewed towards public funding and are insufficient for the scale of transition required.
• Strategic Approaches: It recommends specific financial instruments (e.g., blended finance, green bonds) tailored to the Indian market to de-risk projects for private investors.
• Resilience Building: The authors emphasise that climate finance in India must not just focus on mitigation (reducing emissions) but also on adaptation, financing infrastructure that is resilient to extreme weather events.

Article 2 –  Leading in a Future Economy Project: Tackling Climate Change Through Nature Financing

Focus: Bridging the gap between financial capital and biodiversity projects.

This article examines why, despite the urgent need for climate adaptation, private capital is not flowing into Nature-based Solutions (NbS) in Asia. It highlights a “biodiversity finance gap” estimated at billions of dollars. The authors identify the primary friction points as a lack of “bankable” projects and the inability of financial institutions to quantify nature-related risks.

Key Findings & Recommendations:

• Data Fragmentation: A major barrier is the absence of standardized data to measure the ROI and risk mitigation value of nature projects.
• Multi-Pronged Regulatory Approach: The authors propose a three-part strategy for regulators:
  1. Mandatory Disclosures: Requiring financial institutions to report on nature-related risks (similar to TCFD for climate).
  2. Taxonomy Integration: Adopting clear “green” vs. “transition” taxonomies to prevent greenwashing and clarify investment criteria.
  3. Strategic Alignment: Encouraging central banks to view nature loss as a systemic financial stability risk.

Article 3 –  Leading in a Future Economy Project — Global Regulatory Frameworks for Digital Assets: Comparative Analysis and Potential International Cooperation

Focus: The trade-offs between innovation and regulation in major jurisdictions.

This article offers a comparative legal analysis of how the US, EU, Hong Kong, Japan, and Singapore regulate digital assets. It contrasts the “enforcement-heavy” approaches of some jurisdictions with the “innovation-supportive” frameworks of others

Key Findings & Recommendations:

• Taxonomy Matters: The article dissects how different definitions (e.g., security tokens vs. utility tokens) lead to vastly different compliance burdens.
• Fragmented vs. Harmonised: It highlights that while the EU (via MiCA) moves toward harmonisation, the US remains fragmented.
• Policy Recommendations: The authors suggest that for global cooperation to work, jurisdictions need not have identical laws but must agree on core principles regarding AML/KYC and consumer protection to prevent “regulatory arbitrage” (where crypto firms move to the jurisdiction with the weakest rules).

Article 4 –  Leading in a Future Economy Project: mCBDCs and Stablecoins — Development, Adoption n Implementation with a Focus on Asia

Focus: The coexistence of public (CBDCs) and private (Stablecoin) digital monies.

This report analyses the monetary landscape in Asian economies, distinguishing between Central Bank Digital Currencies (CBDCs)—driven by public policy goals like financial inclusion and sovereignty—and stablecoins, often driven by private sector efficiency in cross-border payments.

Key Findings & Recommendations:

• Motivations: Central banks in Asia are pursuing CBDCs largely to protect monetary sovereignty and improve payment resilience, whereas private stablecoins are filling gaps in the correspondent banking system.
• Policy Implications: The report warns that widespread adoption of non-local stablecoins could impact capital flow management and monetary stability.
• Stakeholder Engagement: It concludes that a binary choice between CBDCs and stablecoins is unlikely; instead, a hybrid ecosystem will emerge. Regulators are advised to focus on interoperability and privacy standards to ensure these digital currencies can integrate securely into the existing financial ecosystem.

Article 5 –  Combating Illicit Finance in Digital Payment Services: The Role of Data Analytics and Technology in Preventing Payment Fraud and Scams

Focus: Harmonising anti-fraud standards across a fragmented region.

Contrasting with Article 4’s focus on tech platforms, this study focuses on the regulatory maturity of financial institutions within ASEAN. It highlights a dangerous divergence: while fraud techniques are becoming regionally sophisticated and borderless, regulatory oversight remains fragmented and nation-specific.

Key Findings & Recommendations:

• Uneven Maturity: The study finds significant gaps between ASEAN member states in their capacity to regulate digital payments, creating “weak links” that fraudsters exploit.
• Technological & Regulatory Harmonisation: The authors argue that ASEAN cannot effectively combat fraud without a harmonised regulatory framework that allows for real-time cross-border information sharing.
• Consumer Education: Beyond tech, the article emphasises that the “human firewall” is critical, recommending standardised consumer education initiatives across the region to reduce susceptibility to scams.

Article 6 – Leading in a Future Economy (Capstone): Illicit Finance, Data and Tech

Focus: Expanding the perimeter of financial crime prevention beyond traditional banks.

This report addresses the surge in payment-related fraud, identifying a critical shift in how scams are perpetrated. While “Primary Stakeholders” (law enforcement and financial institutions) have traditionally borne the burden of anti-fraud efforts, they are no longer sufficient to stop modern scams. The report identifies social media and messaging platforms as the primary “vectors” for these operations, allowing fraudsters to reach victims at scale before any transaction occurs.

Key Findings & Recommendations:

• New Liability Models: The article critically assesses the role of “Other Stakeholders”—specifically telecommunications providers and social media technology companies. It argues these entities must bear greater responsibility for preventing the dissemination of fraudulent content.
• Cross-Sector Collaboration: It calls for a move from siloed banking defenses to an ecosystem approach where data is shared between telcos, tech platforms, and banks to disrupt scams upstream.
• Regulatory Implications: The article recommends regulators formalise the obligations of non-financial tech firms in the fight against financial crime.

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