Laos joins Cambodia in developing state-backed digital currency
Laos is adapting Cambodia‘s concept of introducing a government-backed cryptocurrency, the Japanese fintech involved last year in the creation of Cambodia’s digital money called Bakong announced on October 4.
Tokyo-based blockchain specialist Soramitsu said it has signed an agreement with Laos’ central bank, the Bank of the Lao P.D.R., to commence research into a central bank digital currency. It would assess the role of banks and other intermediaries and the country’s needs for financial inclusiveness, among other areas. If Laos decides to issue a digital currency, Soramitsu may play a role in its development, the Tokyo-based company said.
The digital money would primarily address the problem of financial exclusion which is an issue for Laos. The country was hit particularly hard by the Covid-19 pandemic, during which local districts were not equipped to provide cash relief handouts. Government response was also hindered due to outdated methods of documentation, which exist largely in the form of paper-based family books.
Combating poverty with greater financial inclusion
A digital payment system would help to make the distribution of aid both traceable and instant, enabling the government to target particular regions that have higher levels of poverty.
Digital central bank money would also make low-value retail transactions easier and more convenient, allowing the population to participate more actively in general trade and the e-commerce sector.
To that end, Laos has already introduced a regulatory framework to modernise monetary governance and prepared the roll-out for a payment clearing infrastructure for the banking system in order to improve the efficiency of transactions helped by easy-to-use digital money.
Laos is adapting Cambodia‘s concept of introducing a government-backed cryptocurrency, the Japanese fintech involved last year in the creation of Cambodia’s digital money called Bakong announced on October 4. Tokyo-based blockchain specialist Soramitsu said it has signed an agreement with Laos’ central bank, the Bank of the Lao P.D.R., to commence research into a central bank digital currency. It would assess the role of banks and other intermediaries and the country's needs for financial inclusiveness, among other areas. If Laos decides to issue a digital currency, Soramitsu may play a role in its development, the Tokyo-based company said. The digital...
Laos is adapting Cambodia‘s concept of introducing a government-backed cryptocurrency, the Japanese fintech involved last year in the creation of Cambodia’s digital money called Bakong announced on October 4.
Tokyo-based blockchain specialist Soramitsu said it has signed an agreement with Laos’ central bank, the Bank of the Lao P.D.R., to commence research into a central bank digital currency. It would assess the role of banks and other intermediaries and the country’s needs for financial inclusiveness, among other areas. If Laos decides to issue a digital currency, Soramitsu may play a role in its development, the Tokyo-based company said.
The digital money would primarily address the problem of financial exclusion which is an issue for Laos. The country was hit particularly hard by the Covid-19 pandemic, during which local districts were not equipped to provide cash relief handouts. Government response was also hindered due to outdated methods of documentation, which exist largely in the form of paper-based family books.
Combating poverty with greater financial inclusion
A digital payment system would help to make the distribution of aid both traceable and instant, enabling the government to target particular regions that have higher levels of poverty.
Digital central bank money would also make low-value retail transactions easier and more convenient, allowing the population to participate more actively in general trade and the e-commerce sector.
To that end, Laos has already introduced a regulatory framework to modernise monetary governance and prepared the roll-out for a payment clearing infrastructure for the banking system in order to improve the efficiency of transactions helped by easy-to-use digital money.
