According to a panel discussion at the China Conference on Thursday, the central banks of Singapore and Cambodia are considering central bank digital currencies (CBDCs) as options for e-commerce and digital payments.
Representatives from Singapore and Cambodia’s central banks have expressed interest in central bank digital currencies at a panel discussion at the China Conference: Southeast Asia event.
As crypto use develops among the youthful generation, digital payments, e-commerce, and cryptocurrency have all evolved throughout Southeast Asia in recent years.
Benedicte Nolens, head of the Bank for International Settlements (BIS) Innovation Hub in Hong Kong, said:
“Southeast Asia has been a very fertile ground for digital payment innovation. When you see online e-commerce growth, typically it goes fairly well with new payment mechanisms.”
According to Frederick Fung, chairman of Singapore’s Association of Cryptocurrency Enterprises and Start-ups, the country is making progress in terms of cryptocurrency acceptance. Apart from the younger generation’s growing enthusiasm, older individuals are also getting involved in digital payments and crypto trading.
The central banks of Singapore, Australia, Malaysia, and South Africa cooperated with the BIS Innovation Hub last year on ‘Project Dunbar,’ a cross-border settlement platform for several CBDCs.
Meanwhile, as e-commerce and crypto innovation grow in Cambodia, the National Bank of Cambodia (NBC) is working to increase acceptance of its Bakong retail central bank digital currency (CBDC). With its CBDC, NBC hopes to advance its de-dollarization program.
Assistant Governor of the National Bank of Cambodia, Serey Chea, said:
“There is a lot of room to grow in the internet economy in Southeast Asia. Cambodia is a small country of 16 million people, where we have about 20 million mobile phone subscriptions.”
Southeast Asian countries explore CBDC
Southeast Asian countries are at the forefront of central bank digital currency testing and development (CBDCs).
The central banks of most ASEAN countries, including Singapore, Malaysia, Thailand, Cambodia, and the Philippines, have pushed proposals for CBDCs as e-commerce and digital payments have grown in popularity.
With the establishment of the CBDC, the countries hope to manage their monetary and financial stability in the face of increased crypto usage.
