>> is proximity to the country that owns a transaction processing system relevant in a fully digital world?
Very much yes. Think of two people trading rice between china and the Philippians. That rice is not digital. It is traveling across a not-digital ocean on a not-digital ship. If something goes wrong with a payment they would much rather be dealing with someone in the same timezone who can address the issue before the non-digital ship gets locked down somewhere. When things go very wrong, they don't want to be shopping for a European lawfirm to help with a matter between two Asian businesses. Timezones, language and local understanding still matters for realworld trade.
One nit, many developing countries do pick overseas legal systems to resolve commercial disputes because local systems are not workable / usable. So you might be in india and philippines, but use a london bank for a letter of credit and agreements / bills of lading that are handled in London
A winning combo is a functioning, fair, nonpolitical legal system that works QUICKLY and predictably (fairness a bit secondary) and banking / finance so decisions can be enforced more easily.
Very much yes. Think of two people trading rice between china and the Philippians. That rice is not digital. It is traveling across a not-digital ocean on a not-digital ship. If something goes wrong with a payment they would much rather be dealing with someone in the same timezone who can address the issue before the non-digital ship gets locked down somewhere. When things go very wrong, they don't want to be shopping for a European lawfirm to help with a matter between two Asian businesses. Timezones, language and local understanding still matters for realworld trade.