01 Sep, 2023

LADT: Revolutionizing Digital Currency for Laos and ASEAN Economies

Discover how Lao National Digital Technology Group (LADT) is reshaping Laos' economic landscape through its pioneering digital currency platform. Explore the impact of LADT's innovative solutions on ASEAN's digital transformation and economic growth.LADT: Facilitating Digital Currency Transformation in LaosSituated in the heart of Laos, a buzz of excitement is building across the financial sector as Lao National Digital Technology Group (LADT) is unveiled. This pioneering digital currency platform is poised to redefine the economic landscape of Laos and create ripples across the entire Association of Southeast Asian Nations (ASEAN) region. Positioned at the crossroads of Southeast Asia, LADT is not just transforming the financial transactions within Laos, but also casting a transformative influence on the broader ASEAN community.A Central Enterprise for a Digital FutureLao National Digital Technology Group (LADT), is a central enterprise directly managed by the Lao government. As an innovator in the digital technology sector, LADT is at the forefront of digital technology development, driving growth in the country’s digital economy industry.Since 2019, the Laotian government has been closely monitoring the progress of blockchain technology, recognizing its potential as a transformative force. The government sees this technology as a driving force for the expansion of businesses, bringing advantages not only to Laos and its citizens but also making a positive impact on the larger economic scene of ASEAN.LADT’s Impact on ASEANLADT’s influence stretches beyond the borders of Laos, making its presence felt throughout ASEAN and beyond. With a rapidly growing youth population, ASEAN is poised to become the world’s fourth-largest economy by 2030, with its combined gross domestic product already reaching trillions of dollars. This regional powerhouse comprises countries such as Indonesia, Malaysia, Singapore, the Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia.The spirit of cooperation among these nations has been the cornerstone of ASEAN’s success since its establishment in 1967. The organization’s commitment to fostering strong bonds of unity has led to remarkable achievements in regional progress and collaboration. ASEAN’s economic potential is further amplified by measures like economic integration, regional cooperation, and the ongoing process of digital transformation.NewPay: A Digital Ecosystem for LaosCentral to this digital transformation is NewPay, a dynamic platform that has been having great success throughout Laos. Beyond merely facilitating digital payments, NewPay is an enabler of cultural preservation. Through collaborations with institutions like the Lao Buddhist Association and the Patriotic Front of Laos, NewPay is bridging the gap between technology and tradition.NewPay’s partnerships extend to education as well. By collaborating with major universities in Laos, the platform is revolutionizing campus services. Students can utilize a “Campus Card” for a variety of services, from paying tuition and student loans to covering cafeteria expenses and library fees, creating an all-encompassing digital experience for university life.NewPay is also collaborating with industrial parks such as the Savan-Seno Special Economic Zone to create comprehensive digital ecosystems within these hubs. This extends to offering services like salary distribution, consumer finance, and offline payments, enhancing the quality of life for residents within these parks.Moreover, on the tenth anniversary of the “Belt and Road” initiative and the tenth year of the South Expo, three companies, Lao NewPay Technology Joint Venture Co., Ltd., Yunnan Haohong Supply Chain Co., Ltd., and Fudian Bank Co., Ltd., have joined together to work closely. They want to actively help and become a part of the “Belt and Road” project, and they also want to support the China-South Asia Expo, which is an important event where China and countries from South Asia cooperate in business and trade. Their goal is to make cooperation between Laos and Yunnan, a province in China, better. They will combine their strengths to promote more economic and trade interactions between China and Southeast Asia. This will also help the economy around the ports in Yunnan to grow faster. As a result of this partnership, they are creating the China-Laos Cross-Border Trade Facilitation Service Center, which will make it easier to trade between the two countries.NewPay invites individuals to visit its official website. There, users can learn more about NewPay, access the NewPay App, and start their easy registration process — a small step towards digital convenience and freedom.Exploring ASEAN USD Digital StablecoinLADT and NewPay are excited about the development of their new ASEAN Digital Stablecoin (ASEAN USD). ASEAN USD provides a safe and steady digital currency that works smoothly on the NewPay platform. There are many reasons why ASEAN USD is a great choice for people and businesses.ASEAN USD is unique because it can be minted directly with ASEAN fiat currencies, maintaining a 1:1 value peg to the US dollar. This connection means that ASEAN USD maintains a consistent value even during unstable times. Transparency is important to us so we provide accurate daily records of the current total assets and reserves. This openness means you can put your trust in ASEAN USD, knowing that your investments are properly financially supported.By choosing ASEAN USD you have a chance to be part of something new and exciting that will change the way we use money online.The ASEAN USD AdvantageIn a world of evolving financial systems, ASEAN USD stands out by offering a solution to conventional cross-border payment challenges. Unlike traditional digital payment methods that come with foreign exchange losses and transaction fees, ASEAN USD eliminates intermediaries and currency conversion fees, ensuring minimal transaction costs. Beyond convenience, ASEAN USD is embraced by the emerging Web3 community in Laos, offering interest income to those staking or holding ASEAN USD. Every ASEAN USD transaction generates revenue, benefiting both users and the larger ASEAN USD ecosystem.From online shopping to dining at restaurants, and even withdrawing local currencies from ATMs across the ASEAN region, ASEAN USD opens up many possibilities.As Laos takes strides into the digital era, ASEAN USD will be there to help drive economic growth, innovation, and cooperation both within the nation and across the ASEAN region. With the partnership of NewPay and the collective strength of ASEAN, the path to a digital economy is well on its way, promising prosperity and progress for Laos and its neighboring nations.

24 Aug, 2023

ASEAN Fest 2023: Public Education about ASEAN Chairmanship 2023

The general public, an integral part of ASEAN's progress, can take pride in Indonesia's Chairmanship of ASEAN in 2023. ASEAN Fest 2023 is an inclusive event that offers the community an opportunity to comprehend and appreciate this momentum. Organized by Bank Indonesia (BI) at the Jakarta Convention Center (JCC) from August 22-25, 2025, ASEAN Fest serves as a concurrent event to the second ASEAN Finance Ministers and Central Bank Governors Meeting (AMFGM) in 2023. It extends an invitation to the community to gain knowledge and immerse in the spirit of ASEAN 2023 through various activities including seminars, the "ASEAN Village" as a hub for cultural education, showcasing the traits and cuisines of all ASEAN nations, an ASEAN meeting museum, as well as exhibitions of SMEs and a financial inclusion festival."We, as all ASEAN countries, are a family, and that's what makes ASEAN significant. This forms the essence of ASEAN Fest 2023. Let's gather here each day (until August 25, 2023). Experience the cultural exhibitions of all ASEAN countries, participate in seminars, and engage in talk shows about ASEAN," Perry Warjiyo, the Governor of Bank Indonesia, urged during the inauguration of ASEAN Fest 2023. This call was succeeded by an invitation for ASEAN delegates to explore the ASEAN Village. The event buzzed with contemporary and traditional entertainment, along with school-level competitions.As part of ASEAN Fest, the Digital Financial Inclusion (DFI) Festival is taking place, an outcome of Indonesia's Chairmanship Priority Economic Deliverables for ASEAN 2023. The DFI Festival's objective is to spotlight ASEAN's policies, best practices, and endeavors in advancing digital financial inclusion to support sustainable economic growth, while elevating public awareness of the significance of digital financial literacy. This encompasses activities such as exhibitions and seminars.On the inaugural day of ASEAN Fest, two seminars unfolded: a High-Level Policy Dialogue titled "Frameworks for Integrated Policy: Experiences and the Way Forward," in collaboration between Bank Indonesia (BI) and the Bank of Thailand (BoT), and an International Symposium titled "Digital Financial Literacy to Promote Financial Inclusion." This symposium also marked the launchpad for educational resources on digital financial services, stemming from the collaboration between BI, the Financial Services Authority (OJK), with technical support from the World Bank.During the first seminar, the prominence of policy mix in embodying ASEAN's global leadership was underscored. Governor Perry Warjiyo highlighted that ASEAN's policy mix implementation, including exchange rate interventions, capital flow management, and macroprudential policies amidst global uncertainties, has positioned ASEAN as a reference point. Indonesia's effective implementation of an economic policy mix, rooted in a robust conceptual framework and policy makers' collaboration through open dialogues, stands as evidence in maintaining economic stability amidst global challenges.Simultaneously, Governor Sethaput Suthiwartnarueput of the Bank of Thailand (BoT) shared Thailand's experiences and challenges in implementing an economic policy mix. Acknowledging the formidable challenges in policy mix implementation, Governor Sethaput emphasized the necessity of robust coordination among policy makers for effective policy implementation. He emphasized the flexibility of operationalizing policy mix to match each country's circumstances and readiness.Likewise, Deputy Governor of the Bangko Sentral ng Pilipinas, Francisco G. Dakila, emphasized the importance of optimizing a policy framework that harmonizes various policy instruments to balance the interplay of implemented policies. Francisco stressed the significance of maintaining communication given the multi-objective nature of policy mix. In the subsequent session, the discussion delved into the operationalization of an optimal policy framework to enhance policy mix integration. It was also emphasized that inflation can no longer be the sole indicator of economic expansion, hence the application of policy mix, supported by technology, to bolster economic modeling. Policy implementers should also exercise professional judgment in its application. Looking ahead, policy mix discussions within ASEAN will be further reinforced and deliberated in meetings involving Finance Ministers and Central Bank Governors.Transitioning to the international symposium centered on financial literacy, Deputy Governor of BI, Juda Agung, presented four success stories from Indonesia that demonstrate the positive outcomes of digital financial inclusion. These stories encompass the expansion of marketing reach, the fostering of entrepreneurship and heightened productivity among SMEs through e-commerce, the efficiency enhancement of SME transactions coupled with reduced reliance on cash via digital payments like QRIS introduced by BI, the role of fintech lending in surmounting SME financing obstacles and driving business expansion, and the digitalization of bookkeeping and accounting facilitated by BI's SIAPIK (Financial Information Application System), enabling SMEs to seamlessly and securely generate standardized financial reports digitally.Given the pivotal role of digital financial literacy, Deputy Governor Juda outlined three strategies to fortify digital financial literacy. These strategies encompass establishing an extensive, structured, and targeted framework for digital financial literacy, bolstering consumer safeguards, and fostering synergistic collaboration among governments, regulators, financial service providers, academics, and the broader public.Esteemed speakers in these seminars included Pierre-Olivier Gourinchas (IMF), Mr. Claudio Borio (BIS), Assistant Governor Bank of Thailand, Piti Disyatat, Deputy Commissioner of OJK, Friderica Widyasari, Head of the Department of Monetary Economic Policy at BI, Firman Mochtar, Head of the Department of SME Development and Consumer Protection at BI, Yunita Resmi Sari, Aman Santosa (OJK), Bianca Isainsu (OECD), Francesco Strobbe (World Bank), and Arga M. Nugraha (Bank Rakyat Indonesia).Anticipation was high for the multitude of seminars aligned with ASEAN's 2023 economic focus at ASEAN Fest, alongside a diverse array of educational activities. Further details about ASEAN Fest can be obtained by downloading the provided booklet: https://www.bi.go.id/id/ASEAN-2023/Documents/E-Booklet-Acara-ASEAN-Fest.pdf