Vietnam, the Philippines, and Brunei to Join ASEAN Payments System
Vietnam, the Philippines, and Brunei will join a payments initiative that aims to connect all countries of the Association of Southeast Asian Nations (ASEAN) bloc. The payment system uses QR codes to simplify cross-border payments and reduce dependence on the U.S. dollar.
- Vietnam is in talks to agree on a national QR system and will join later this year.
- The Philippines is organizing industry leaders for regional connectivity.
- Brunei is in the initial stages of regulating its internal payment industry.
- Indonesia and Malaysia have been using the system since May.
- The goal is to interconnect ASEAN countries for seamless cross-border payments.
De-Dollarized Payments a Priority
The ASEAN bloc has prioritized moving away from the U.S. dollar in financial settlements. They encourage the use of local currencies to deepen regional financial integration. Indonesian President Joko Widodo emphasizes the need to avoid using foreign payment systems to prevent possible geopolitical repercussions.
Hot Take
The inclusion of Vietnam, the Philippines, and Brunei in the ASEAN Payments System is a significant step towards regional financial integration. By simplifying cross-border payments and reducing dependence on the U.S. dollar, ASEAN countries are working towards a more seamless and secure payment network. This move aligns with the bloc’s priority of de-dollarization and reinforces their commitment to using local currencies. As more countries join the system, the vision of interconnected payments within ASEAN becomes closer to reality, fostering economic cooperation and growth in the region.
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