Singapore, Cambodia among Asean countries eyeing digital currencies to promote e-commerce, payment efficiency

Southeast Asia a very fertile ground for digital payments innovation, (BIS) Innovation Hub executive says

A lot of room to grow in the internet economy in Southeast Asia, says the National Bank of Cambodia

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Singapore last year teamed up with central banks in Australia, Malaysia and South Africa, along with (BIS) Innovation Hub, to explore the development of platforms for the cross-border settlement of different CBDCs. Photo: Getty Images

Published: 8:30am, 25 Mar 2022Updated: 9:17am, 25 Mar 2022

Cental banks in several Southeast Asian countries are exploring the use of digital currencies to enhance payments efficiency and to encourage start-ups and e-commerce in the region, experts said.

With a relatively young population that has a median age of 30 years and a high percentage of internet and mobile phone use, Southeast Asia has seen a lot of start-ups come up in digital payments, e-commerce and cryptocurrencies.

“Southeast Asia has been a very fertile ground for digital payment innovation,” Benedicte Nolens, head the Hong Kong centre of the Bank for International Settlements (BIS) Innovation Hub, said during a panel discussion. “When you see online e-commerce growth, typically it goes fairly well with new payment mechanisms.”

Nolens said this during a panel discussion at the China Conference: Southeast Asia event hosted the South China Morning Post on Thursday.

Central bank digital currencies, or CBDCs, have been growing in popularity in Asia. China started developing its e-yuan in 2014 while Hong Kong is also studying its own e-HKD. The Hong Kong Monetary Authority, the city’s de facto central bank, has been working with the People’s Bank of China and counterparts in Thailand and the United Arab Emirates on project “mBridge” to establish a CBDCs settlement platform.

Elsewhere, Singapore last year teamed up with central banks in Australia, Malaysia and South Africa, along with BIS Innovation Hub, to explore “Project Dunbar” for the development of platforms for the cross-border settlement of different CBDCs.

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