Singapore and Cambodia explore CBDC to promote diversity of payment methods

Revealed today, Singapore and Cambodia are taking notable steps in using Central Bank Digital Currency (CBDC). Along with digital currencies, the two Southeast Asian countries want to improve the efficiency of the payment ecosystem as well as promote the growth of startups across the country.

As reported by the South China Morning Post (SCMP), both ASEAN countries are leveraging the growth of e-commerce to increase efficiency in the payments ecosystem.

Benedicte Nolens, head of Innovation at the Bank for International Settlements (BIS), said:

“Southeast Asia is very fertile ground for digital payments innovation.” – “You can see the growth of e-commerce online, it usually goes pretty well with new payment mechanisms.”

Singapore is known to be particularly interested in the development of cryptocurrencies. The proof is the emergence of a number of startups providing services in this field. Although there are no specific regulations like other countries, the Central Bank of Singapore (MAS), as well as other regulators in the country, are focusing more on the long-term value that digital currencies can bring. bring. It is known that they are thinking about the licensing process for blockchain and cryptocurrency start-ups.

Aside from the growth of private crypto startups, Singapore is also ahead in the CBDC race as part of the BIS Dunbar Project, which seeks to build a multi-CBDC platform for many. Central Bank develops digital currency.

On the other hand, Cambodia is a relatively developing economy with a fast growth rate compared to the growth of the internet.

Serey Chea – Assistant Governor of the National Bank of Cambodia shared:

“The internet economy in Southeast Asia still has a lot of room for development. Cambodia is a small country with 16 million people, where we have about 20 million mobile phone subscribers.” – “Like a newborn baby is immediately given a cell phone subscription with two or three subscriptions.”

According to SCMP sources, Singapore’s expansion of payment methods has boosted the country’s technology startups more than 10 times since 2015. A trend that is expected to continue for the foreseeable future. .