LADT: Revolutionizing Digital Currency for Laos and ASEAN Economies_blog

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 Laos

Situated 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 Future

Lao 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 ASEAN

LADT’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 Laos

Central 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 Stablecoin

LADT 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 Advantage

In 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.

Last news

Next news

06 Sep, 2023

MetaMask Adds Bank and Paypal Feature To Withdraw to Fiat

MetaMask, the world's leading hot wallet for cryptocurrencies, has unveiled a new feature that allows its users to convert their digital assets into fiat currency.MetaMask Is Adding A Function For Withdrawing Cryptocurrencies To Fiat Via Banks And PaypalMetaMask, the world's leading hot wallet for cryptocurrencies, has unveiled a new feature that allows its users to convert their digital assets into fiat currency and transfer the funds to their bank accounts.The "Sell" tool allows customers to seamlessly change their crypto holdings into fiat currency, with the option to send the funds directly to their bank accounts.This service is initially available in the United States, the United Kingdom, and select regions of Europe, with an emphasis on supporting Ethereum's native asset, ETH, on the Ethereum mainnet. In the near future, MetaMask intends to expand this feature to incorporate native gas tokens on Layer 2 networks.Additionally, MetaMask users have the option to add converted fiat to their PayPal balances, thanks to an integration between the two companies that was announced late last year.MetaMask's decision to make crypto to fiat conversion easier lines up with the company's objective to make the Web3 experience more accessible and user-friendly. With over 30 million monthly active users, MetaMask is a widely adopted self-custodial hot wallet. Its browser extension is available on popular browsers like Google Chrome, Brave and more.This latest development comes on the heels of recent scams plaguing MetaMask users. Phishing sites of official government websites are used to trick users into connecting their wallet, allowing hackers to take complete control of their crypto assets.

29 Aug, 2023

Vietnam Bolsters Regional Financial Links through Connectivity Payment Initiative

On August 25, 2023, Vietnam, through its central bank, the State Bank of Vietnam (SBV), officially joined the Regional Payment Connectivity (RPC) initiative. The RPC initiative was initiated by the central banks of Indonesia, Singapore, Thailand, Malaysia, and the Philippines during the G20 Summit in 2022 to develop and enhance inclusive cross-border payment systems in Southeast Asia, such as using QR-code payments.The partnership aims to support the post-pandemic recovery of countries in the region with a specific aim to benefit micro, small, and medium-sized businesses (MSMEs). MSMEs are the dominant form of business enterprise in Southeast Asia, accounting for between 88 to 99 percent of all businesses as well as approximately 70 percent of total employment.Regional Payment Connectivity Initiative can increase financial inclusion in VietnamThe RPC initiative can help increase financial inclusion in Vietnam. Despite some 70 percent of the adult population owning a bank account, they are severely underbanked with more than half lacking access to credit.Meanwhile, the ASEAN-5—Indonesia, Singapore, Thailand, Malaysia, and the Philippines—have inked agreements to link their QR code payment systems. This will enable, for example, Indonesian consumers to pay for goods or services in Thailand by scanning Thai QR codes. Thai consumers can also use their mobile applications to scan the Quick Response Code Indonesian Standard (QRIS) when buying products or services in Indonesia.Further, the RPC initiative will help benefit Vietnam’s digital economy, which had a gross merchandise value (GMV) of US$23 billion in 2022. This is expected to increase to between US$120 billion to US$200 billion by 2030. E-commerce transactions are set to drive this growth which had a GMV of US$14 billion in 2022 and is predicted to reach US$32 billion by 2025.As such, QR codes can encourage Vietnamese MSMEs to develop more cashless payment options, particularly since most MSMEs are in the informal sector—according to World Economics, Vietnam’s informal sector was valued at US$315 billion at GDP PPP levels.  Barriers to financial inclusion in Southeast AsiaCash is kingAs most Southeast Asian MSMEs are in the informal sector, they pay wages in cash, especially in rural and low-income communities. Without bank account records, many Southeast Asian MSME firms and their employees do not have credit histories, and this hinders their ability to access financial services, such as business loans or mortgages.Financial literacyLow levels of financial literacy are impacting the low adoption rate of financial services in Southeast Asia. Financial literacy is around 30 percent of the region’s adult population—lower than the global average.The importance of mobile phonesMore people in Southeast Asia have a mobile/cell phone than a bank account. The mobile phone is thus key to achieving financial inclusion in the region as it enables users to access mobile wallets, which are linked to QR codes.Some of the most used digital wallets in Southeast Asia are GrabPay, GoPay, OVO, MoMo, and PayFazz. Through these digital wallets, consumers can conduct online transactions without having a bank account. Moreover, as more consumers and businesses use these digital wallets, more data gets generated around their financial behavior and consumer trends. Financial institutions will then be able to tailor the type of financial products offered to this demographic.For foreign investors in the e-wallet industry, it is essential that they deliver a customer-centric experience to allow customers to pay with the local payment method of their choice, ranging from mobile banking to payments via convenience stores.P2P lendingMany MSMEs in Southeast Asia have business models that are not compatible with the characteristics of the financial products offered by banks and other financial institutions. That includes aspects, such as payment terms for loan schemes, forms of collateral, and credit quality, among others.Peer-to-peer (P2P) lending is one financing model that has the potential to serve the region’s underbanked and unbanked population. In Indonesia for instance, there are already over 160 officially registered fintech companies that offer P2P lending services, which was valued at over US$7 billion in 2020. These microloans are becoming increasingly popular as they take a short time to be disbursed (less than 24 hours), with the amount usually being less than US$100. Furthermore, the terms and maturity of the loans are also small and short, being repaid within a few weeks.