Hanoi (VNA) – Leaders of the Association of SoutheastAsian Nations (ASEAN) recently declared to advance regional paymentconnectivity and promote local currency transactions.
According to a Google, Temasek and Bain & Co. report,ASEAN’s booming digital payment market is expected to hit 2 trillion USD bytransaction value in 2030.
Recognising the potential benefits of using localcurrencies, they emphasised the importance of strengthening financialresilience, deepening regional financial integration, and bolstering regionalvalue chains.
To achieve these goals, ASEAN leaders pledged to leverageemerging opportunities brought by innovation to facilitate seamless and securecross-border payments, taking into account the unique circumstances of eachcountry.
In the process, technology is pivotal in advancing regionalpayment connectivity within ASEAN by enabling faster, cheaper, safer,transparent, and inclusive cross-border payment systems and services usinglocal currencies.
Using quick response (QR) codes, mobile applications, and digital platformsenhances the efficiency and convenience of local currency transactions amongASEAN countries.
It also supports developing and integrating local currencymarkets, improving liquidity, market access, and harmonising paymentinfrastructure and standards.
ASEAN countries are making significant strides in regionalpayment connectivity and the promotion of local currency usage. Indonesia,Singapore, Malaysia, Thailand, and the Philippines have signed a Memorandum ofUnderstanding, prioritising cross-border payment systems, local currencysettlement frameworks, digital payment platforms, and financial inclusion.
Moreover, countries such as Brunei, Cambodia,Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, andVietnam have implemented bilateral local currency settlement frameworks basedon the ASEAN Guideline.
The State Bank of Vietnam and the Bank of Thailand have jointly launched QRpayment services for cross-border transactions.
Additionally, Bank Indonesia and the Monetary Authority ofSingapore collaborate on a cross-border QR payment linkage to further enhancepayment connectivity across ASEAN.
These initiatives leverage QR codes, mobile applications,and digital platforms to improve cross-border transactions’ efficiency,security, and convenience.
ASEAN leaders have also agreed to promote using localcurrencies for cross-border transactions within the region. This move aims toreduce reliance on major international currencies, enhance financial stability,and avoid potential spillovers from global crises.
To advance regional payment connectivity, ASEAN leadersagreed to establish a Task Force responsible for studying the feasibility,benefits, challenges, and modalities of implementing the ASEAN Local CurrencyTransaction Framework.
The Task Force will develop a draft framework that providesguidance and recommendations for promoting local currency usage in cross-bordertransactions.
Established in May, it is expected tosubmit its report and draft framework by the end of 2024. The framework shouldbe comprehensive and practical, considering the varying levels of development,readiness, and capacity among ASEAN countries./.
According to a Google, Temasek and Bain & Co. report,ASEAN’s booming digital payment market is expected to hit 2 trillion USD bytransaction value in 2030.
Recognising the potential benefits of using localcurrencies, they emphasised the importance of strengthening financialresilience, deepening regional financial integration, and bolstering regionalvalue chains.
To achieve these goals, ASEAN leaders pledged to leverageemerging opportunities brought by innovation to facilitate seamless and securecross-border payments, taking into account the unique circumstances of eachcountry.
In the process, technology is pivotal in advancing regionalpayment connectivity within ASEAN by enabling faster, cheaper, safer,transparent, and inclusive cross-border payment systems and services usinglocal currencies.
Using quick response (QR) codes, mobile applications, and digital platformsenhances the efficiency and convenience of local currency transactions amongASEAN countries.
It also supports developing and integrating local currencymarkets, improving liquidity, market access, and harmonising paymentinfrastructure and standards.
ASEAN countries are making significant strides in regionalpayment connectivity and the promotion of local currency usage. Indonesia,Singapore, Malaysia, Thailand, and the Philippines have signed a Memorandum ofUnderstanding, prioritising cross-border payment systems, local currencysettlement frameworks, digital payment platforms, and financial inclusion.
Moreover, countries such as Brunei, Cambodia,Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, andVietnam have implemented bilateral local currency settlement frameworks basedon the ASEAN Guideline.
The State Bank of Vietnam and the Bank of Thailand have jointly launched QRpayment services for cross-border transactions.
Additionally, Bank Indonesia and the Monetary Authority ofSingapore collaborate on a cross-border QR payment linkage to further enhancepayment connectivity across ASEAN.
These initiatives leverage QR codes, mobile applications,and digital platforms to improve cross-border transactions’ efficiency,security, and convenience.
ASEAN leaders have also agreed to promote using localcurrencies for cross-border transactions within the region. This move aims toreduce reliance on major international currencies, enhance financial stability,and avoid potential spillovers from global crises.
To advance regional payment connectivity, ASEAN leadersagreed to establish a Task Force responsible for studying the feasibility,benefits, challenges, and modalities of implementing the ASEAN Local CurrencyTransaction Framework.
The Task Force will develop a draft framework that providesguidance and recommendations for promoting local currency usage in cross-bordertransactions.
Established in May, it is expected tosubmit its report and draft framework by the end of 2024. The framework shouldbe comprehensive and practical, considering the varying levels of development,readiness, and capacity among ASEAN countries./.
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