TechDigits

Tech news
Monday, May 20, 2024

0:00
0:00

Southeast Asia moves closer to economic unity with new regional payments system

In a major step towards economic unity, Southeast Asian nations have launched a new regional cross-border payment system. This move could foster financial integration among participants, bringing the ASEAN bloc closer to its goal of economic cohesion.
The program allows residents in Indonesia, Malaysia, Thailand, and Singapore to pay for goods and services in their local currencies using a simple QR code. The Philippines is also expected to join the initiative soon, according to each country's respective central bank.

This regional payment system comes after the five Southeast Asian countries signed an official agreement last year and reiterated their commitment to the project at the recent ASEAN summit in May. They pledged to work on a road map to expand regional payment links to all ten ASEAN members.

The primary aim of this scheme is to support and facilitate cross-border trade settlements, investments, remittance, and other economic activities to create an inclusive financial ecosystem in Southeast Asia.

Experts believe that retail industries will particularly benefit from an expected rise in consumer spending, which could, in turn, strengthen tourism.

One of the critical objectives of this system is to reduce the region's reliance on external currencies like the U.S. dollar for cross-border transactions, especially for businesses. The strength of the U.S. dollar in recent years has led to weaker ASEAN currencies, hurting economies in the bloc, most of which are net energy and food importers.

By connecting QR code payment systems, funds can be easily sent from one digital wallet to another. These digital wallets can act as bank accounts and can be linked to formal financial institutions.

This system is expected to be particularly advantageous for micro-enterprises and small- and medium-sized businesses, which make up over 90% of businesses in Southeast Asia. It will also benefit marginalized individuals from low-income backgrounds, as it can be used by the unbanked population.

However, challenges lie ahead. Central banks will need to address security and fraud concerns and educate the public to embrace the new payment system. Additionally, there are concerns about potential currency pressures, particularly on the Singapore dollar, as it might emerge as a de facto reserve currency within the region.

Despite these challenges, analysts believe that a unified cross-border digital payment system will foster a sense of regionalism and ASEAN-centrality in managing international affairs, especially in light of escalating tensions among major global powers.

This coordinated action will require strong political will from regional leaders, and its success will determine whether ASEAN members can effectively implement this ambitious venture.

With this new payments system, Southeast Asia is paving the way for economic independence and stronger economic ties with a more integrated financial landscape in the region.
Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×