As digital currencies around the world are being adopted, Indonesia as Chair of ASEAN in 2023 is determined to lead the way and bring the region up to speed.
Perry Warjiyo, Governor of Bank Indonesia (BI), the country’s central bank, speaking at a high-level seminar discussing the “Payment System in the Digital Era” in Badung, Bali, on Tuesday, said that ASEAN countries need to improve regional payment connectivity in order to script inclusive economic recovery as well as mitigate any risks that may arise, report Antara News.
ASEAN can lead other countries by example by establishing cross-border payment connectivity to support financial inclusivity and the regional economy, Warjiyo said.
Some countries in ASEAN; Indonesia, Singapore, Malaysia, Thailand, and the Philippines, are currently pursuing such connectivity by committing to integrating payment systems, he pointed out.
The commitment is being pursued through initiatives such as Quick Response (QR) Code, fast payment, Real Time Gross Settlement (RTGS), and Local Currency Transactions (LCT), he said.
Recently, the Nexus connectivity hub, which connects central banks of Singapore, Malaysia, and Italy, was initiated by the Bank for International Settlements, he noted.
As part of its 2023 ASEAN chairmanship, Indonesia will extend the agreement to all ASEAN member countries so it would not just be limited to the five countries, Warjiyo said.
This is intended to improve digitization and the cross-border payment system so that it would support ASEAN economic recovery, financial inclusivity, and support the global economy, he said.
“So this is why, from five ASEAN countries to all ASEAN countries, then global cross-border connectivity,” he added.
The seminar on Tuesday was held as part of the first Meeting of the ASEAN Finance Ministers and Central Bank Governors, which is taking place from March 28 to 31, 2023, report Antara News.
BI and the Finance Ministry are hosting some side events to support the main agenda. It is expected that the events will build understanding on the latest issues impeding ASEAN countries and serve as discussion forums for participants.
Source: Antara News