Singapore and Cambodia are notably exploring the use of Central Bank Digital Currencies (CBDCs) and digital currencies. Through this exploration, they can improve their payment ecosystem efficiency. Moreover, they are bolstering the growth of startups across the board.
Both ASEAN countries are capitalizing on the growth of e-commerce on their shores to maintain efficiency in their payments ecosystem. According to the reports by the South China Morning Posts.
“Southeast Asia has been a very fertile ground for digital payment innovation,” Benedicte Nolens, head of the Hong Kong center of the Bank for International Settlements (BIS) Innovation Hub. “When you see online e-commerce growth, typically it goes fairly well with new payment mechanisms.”
Moreover, Singapore is famous for particularly warming up to the growth of digital currencies. There is a number of startups springing forth to offer services in this regard. Though the regulation may be slow in comparison with other nations, the Monetary Authority of Singapore (MAS), as well as the other regulatory bodies in the country, are more focused on long-term value. On the other hand the whole process for licensing a business with emerging technology
Singapore is In the Upfront of the CBDC Race
With the growth of private digital currency startups, Singapore is upfront in the CBDC race as is a part of BIS Project Dunbar. It is seeking to build a multi-CBDC platform for a variety of Central Banks developing their digital monies. Cambodia is a relatively growing economy whose growth is fast as compared to internet advancement.
“There is a lot of room to grow in the internet economy in Southeast Asia. Cambodia is a small country of 16 million people. They have about 20 million mobile phone subscriptions,” said Serey Chea, Assistant Governor of the National Bank of Cambodia.
Moreover, as Per the SCMP, the apparent drive-by these Southeastern Asian countries to boost their payments landscape. It is helping in promoting the tech startups in Singapore to grow more than 10 times since 2015, a trend that is billed to continue into the near future.
