Thailand and Hong Kong Launch Cross-Border QR Payments_blog

11 Dec, 2023

Thailand and Hong Kong Launch Cross-Border QR Payments

In December 2023, Thailand’s central bank and the Hong Kong Monetary Authority launched a new cross-border QR payment link enabling travelers from Thailand and Hong Kong to make retail payments through their mobile payment applications.

Through the link, customers of Hong Kong’s Faster Payment System (FPS) and Thailand’s PromptPay can use their respective QR codes for merchants in either jurisdiction. Thai travelers in Hong Kong can use their PromptPay application at more than 50,000 FPS merchants in Hong Kong while travelers from Hong Kong can use their FPS application at more than one million PromptPay merchants in Thailand. Merchants will receive the funds instantly.

Further, Hong Kong travelers can make a maximum payment of HK$10,000 (US$1,279) per day while Thai travelers can spend a maximum of of 500,000 baht (US$14,149) daily.

QR payments can help boost tourism numbers in Thailand

For Thailand, this seamless payment transaction system will help boost their efforts to attract more travelers from Hong Kong and mainland China.

The Thai government also introduced a visa waiver program for Chinese tourists between September 25 and February 29, 2024. Through this five-month stimulus scheme, tourists can stay up to 30 days with the government aiming to attract some five million Chinese tourists by the end of the year. Without the visa exemption scheme, the government expected to see 3.4 million Chinese visitors for the year, or 31 percent of the total in 2019.

Tourism has been a key driver of Thailand’s economic recovery in 2023 although the numbers are still below pre-covid levels. The country received an estimated 24.5 million foreign tourists in the first 11 months of this year which is in line with the government’s target of 25 million visitors – In comparison Thailand saw 40 million international arrivals in 2019, accounting for 18-20 percent of GDP.

QR payments can strengthen Thailand’s MSMEs

QR codes can encourage Thailand’s micro, small, and medium-sized enterprises (MSMEs) to adopt cashless payment options, particularly since most MSMEs are in the informal sector and are either unbanked or underbanked. An estimated half of Thailand’s population remains unbanked or has no access to financial products and 18 percent are underbanked.

This mirrors the situation in the region where 50 percent (approx. 300 million people) of Southeast Asia’s population are unbanked and a further 24 percent are estimated to be underbanked. Financial inclusion varies among Southeast Asian countries. Singapore is one of the most financially inclusive countries in the world whereas some 70 percent of Vietnam’s population is unbanked. For the Philippines, it is 65 percent, and for Indonesia, it is 50 percent.

ASEAN aims to create seamless cross-border payments between member states under the ASEAN Payments Policy Framework (APPF), by harmonizing and modernizing payment infrastructures. This will enable ASEAN to ensure that regulatory frameworks can safeguard the service users’ interest, while also promoting innovation and investments in information and technology (ICT) in the region.

Despite the lack of uniform regulations and economic disparities between ASEAN states, market forces driven by consumer and business demands will propel the bloc toward realizing a multi-country real-time network.

The bloc is trying to emulate the European Union’s (EU) Single European Payments Area (SEPA)-style payments network. The system was introduced for credit transfers in 2008 before being fully implemented in the Euro area by 2014. The pace of SEPA’s development was assisted by the fact that participating countries were already members of the EU and used the same currency — the Euro.

Many 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.

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13 Dec, 2023

Laos Targets Global Audience for "Visit Laos Year 2024"

In a bid to enhance international tourism in Laos, the government has reached out to countries across the world, extending invitations for their support of “Visit Laos Year 2024.” This nationwide tourism campaign seeks to draw more visitors, ultimately contributing to Laos’ economic growth.With this objective in mind, the country is specifically focusing on its Chinese neighbors, capitalizing on their geographical proximity and the recently developed transportation infrastructure connecting the two nations.The plea was made during a meeting on 7 December in Vientiane Capital that focused on fostering Laos-China tourism collaboration, aligning with the Belt and Road Initiative’s objectives.Director General of the Tourism Marketing Department, Ministry of Information, Culture, and Tourism, Khom Douangchantha, emphasized the growing influx of Chinese tourists and encouraged Chinese businesses to offer tailored Lao tourism programs for a successful Visit Laos Year 2024.The inauguration of the Laos-China railway has not only enhanced travel options but also fostered reciprocal visits between Laos and China. This development has also enticed visitors from various other countries across the region.Additionally, major airlines like Lao Airlines and China Eastern Airlines now provide direct flights connecting key cities in both nations, such as Vientiane Capital in Laos and Guangzhou, as well as Kunming in China.The Lao government has further sought support on a global scale, focusing not only on China but also on neighboring countries like Thailand and Vietnam. In the first nine months of 2023, tourists from these nations claimed the top two spots among international visitors to Laos.With nearly 1 million Thai tourists already having visited Laos during this period, the numbers are poised to soar in the coming years. The anticipated launch of the first train service connecting Nong Khai station to the newly built Vientiane (Khamsavath) station in 2024 is expected to significantly amplify cross-border tourism.Laos also aims to attract more visitors from neighboring Vietnam. In a strategic move, Lao Airlines recently signed up for a partnership with Vietjet, Vietnam’s top low-cost airline, to enhance cooperation in passenger and cargo travel. The collaboration was initiated in early December, and Vietjet plans to introduce a direct flight route between Vientiane Capital and Ho Chi Minh City, featuring four weekly flights starting in February 2024.To cater to both domestic and international tourists, the Lao government is actively pushing for improvements in hotel accommodations, tourism resources, products, transportation, and medical facilities, prioritizing quality, safety, and visitor satisfaction.Visit Laos Year 2024 stands as a comprehensive tourism promotion initiative, highlighting the country’s cultural, historical, and natural wonders. The Ministry of Information, Culture, and Tourism, in collaboration with provinces nationwide, has curated a diverse calendar of 79 events, featuring 14 national-level and 65 local events. Tourists can leverage this calendar to plan their visits.Anticipated as a catalyst for economic growth, Visit Laos Year 2024 is expected to attract 2.7 million foreign visitors and generate USD 401 million in revenue, according to the Ministry of Information, Culture, and Tourism. The government envisions widespread benefits, particularly for businesses in the tourism sector.

08 Dec, 2023

Exploring Recent Drivers of Stablecoin Market Expansion

In the dynamic landscape of digital finance, stablecoins have taken center stage, creating a surge in market activity. As we peel back the layers of this intriguing trend, a compelling narrative unfolds, revealing the reason behind the recent stablecoin market movement.The Recent Rise of StablecoinsStablecoins, initially a specialized concept, have seen substantial growth, becoming integral elements within the cryptocurrency ecosystem. Whether pegged to traditional fiat currencies or guided by algorithmic structures, their stability has garnered widespread interest, influencing a diverse range of users and contributing to the restructuring of the financial landscape.Behind Recent SurgeThe surge in stablecoin popularity is no coincidence. A convergence of factors, spanning economic shifts to technological advancements, has brought increased interest in stablecoins. Understanding these dynamics is pivotal to understanding their recent popularity.The Basics of Stablecoins① Defining Stablecoins: A Quick OverviewStablecoins, fundamentally, are digital assets engineered to mitigate the inherent volatility in cryptocurrencies. Whether pegged to fiat currencies like the US Dollar or governed by algorithms, their primary objective is to furnish a reliable unit of value within the turbulent crypto space.② Types of StablecoinsThere are various types of Stablecoins, each presenting unique features. From the extensively adopted fiat-backed models like USDT and USDC to innovative algorithmic variants, the stablecoin landscape offers a diverse range of options accommodating different preferences and risk appetites.Exploring USDT① What is USDTUSDT, or Tether, stands as a pioneering fiat-backed stablecoin, tethered to the US Dollar at a 1:1 ratio. Designed to combine the efficiency of blockchain technology with the stability of traditional fiat currency.② Key FeaturesUSDT boasts features like liquidity, facilitating seamless trading within the crypto market. Its widespread adoption across various platforms and exchanges has solidified its position as a popular stablecoin for many investors.Exploring USDC① What is USDCUSDC, or USD Coin, mirrors the concept of a fiat-backed stablecoin, providing a digital representation of the US Dollar. It operates on a transparent and regulated framework, contributing to its growing popularity.② Key FeaturesUSDC distinguishes itself with a commitment to regulatory compliance and transparency. Regular audits ensure a 1:1 peg to the US Dollar, gaining trust within the crypto community as a stable alternative for transactions.Exploring USDA① What is USDAASEAN USD (USDA), a new stablecoin by Laos NewPay Technology and Lao National Digital Technology Group. Fully backed by fiat assets, it operates on the blockchain, minted directly with ASEAN fiat, maintaining a 1:1 peg to the US Dollar.② Key FeaturesASEAN USD in the NewPay ecosystem covers diverse payments, endorses top crypto exchanges, and integrates Visa, MasterCard, and WeChatPay. With a seamless payment experience featuring a straightforward process and ultra-low fees, it transcends borders. Ensuring proportional growth and a secure financial strategy, with a compliant framework, fostering a dynamic and responsible financial environment. For more information about USDA (click here)Factors Influencing Stablecoin Adoption① How Global Events Impact Stablecoin UptakeGlobal economic shifts significantly influence the adoption of stablecoins. During times of market uncertainty or currency devaluation, these digital assets become a haven for investors seeking stability and a hedge against economic turbulence.② Navigating the Legal LandscapeThe regulatory landscape plays a pivotal role in shaping the trajectory of stablecoins. Clarity and adherence to regulations instill confidence in investors, fostering an environment for the widespread adoption of stablecoins.③ Blockchain’s Role in Stablecoin SuccessThe underlying blockchain technology is the backbone of stablecoins. Its efficiency, transparency, and decentralized nature contribute to the success and seamless functioning of stablecoin ecosystems.Reasons Behind the Recent Boom in the Stablecoin MarketRecently, the stablecoin market has witnessed a surge in activity. Several factors contribute to this phenomenon, reflecting a dynamic landscape in the digital currency space. Let’s look into the key reasons behind the current excitement:① Rising U.S. Treasury YieldsThe increase in U.S. Treasury yields, surpassing the returns offered by decentralized finance (DeFi) protocols, has sparked heightened interest in stablecoins. Investors seeking competitive yields are drawn to the stability and potential gains offered by stablecoin investments.② Emergence of New Stablecoin ProjectsA wave of new projects introducing innovative stablecoin types has flooded the market. These projects strategically incentivize ecosystem participants by offering lucrative profit-sharing mechanisms. This approach not only enhances the projects’ market share but also fosters a competitive environment, driving overall growth.③ Payment Service CompaniesCompanies specializing in payment services are gradually entering the stablecoin market. Recognizing the potential of stablecoins in revolutionizing digital transactions, these payment-focused entities are exploring opportunities to integrate stablecoins into their platforms. This entry marks a significant shift, potentially bridging traditional financial systems with the rapidly evolving digital currency landscape.④ Innovation in Stablecoin Spacei). Exploring Innovative Stablecoin ModelsInnovation thrives in the stablecoin space, with projects exploring models beyond the traditional ones. Algorithmic stablecoins, for instance, leverage smart contracts to autonomously adjust supply, offering a dynamic approach to stability.ii). DeFi and StablecoinsDecentralized Finance (DeFi) and stablecoins are forging a symbiotic relationship, revolutionizing traditional financial systems. The integration of stablecoins into DeFi protocols enhances liquidity, accessibility, and opens up new avenues for decentralized financial services.ConclusionExamining the recent rise in stablecoins, considering factors like economic influences and technological advancements, provides insight into their success. Looking ahead, there is an expectation of ongoing development in the stablecoin market. The integration of traditional finance with digital innovation, exemplified by digital currency company LADT and digital stablecoins like USDA, positions these assets prominently. This points towards a future where stability and decentralization seamlessly coexist in the ever-changing landscape of digital currencies.