13 Jan, 2025

Malaysia PM: Govt Exploring Policy for Crypto, Blockchain Tech

ABU DHABI: The government is looking at formulating a policy on digital finance, which could eventually see cryptocurrency and blockchain technology recognised in Malaysia.Malaysia Prime Minister Datuk Seri Anwar Ibrahim said he had discussed with the Abu Dhabi government and cryptocurrency and blockchain technology giant Binance to study how to move forward with the idea."We have talked about digital transformation, data centres and artificial intelligence (AI). We now face demands which require us to think about making significant changes."I had lengthy discussions with the Abu Dhabi leadership and Changpeng Zhao, co-founder of the world's largest cryptocurrency platform Binance."I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren't left behind. Ensuring that is regulated could safeguard the people's interests and prevent leakages," he told Malaysian media at the end of his three-day official visit to Abu Dhabi today.Anwar said he would be consulting the cabinet on the move."However, this innovation is just like AI, which would revamp the financial world. We should not sit idly by and wait and later be forced to do so after others have done it already," he said.He cited the example of the United Arab Emirates, which is now a leader in the field."They (UAE leaders) feel that they can forge a close cooperation with Malaysia on this issue. We need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy."We have discussed at length about fintech. But when something new comes about, we get agitated."I hope we can be more open to this. I am leaning towards not just approving but also expediting this," he said.He said Malaysia would not be starting from scratch but would rely on the experiences of others including Binance and the UAE."This is an evolution which happens quickly and requires us to be equally fast. We feel that Malaysia should not be left behind while mired in an old financial system," he said.Asked when this policy would take place, he said it would require comprehensive studies from the Treasury, the Securities Commission and Bank Negara Malaysia."As with all new ideas raised, there will be some concerns. We have to train our personnel, develop competency, and get the players to participate."What is pertinent is that we have excellent relations with the UAE. We told them that we would move on this on the condition that we work as partners to ensure that things are on track."This will be a radical departure from the old ways."Anwar said a paper on the issue would be drafted and presented to the cabinet for endorsement as soon as possible.

08 Jan, 2025

Laos, Vietnam Launch Cross-Border QR Code Payment System

On 8 January, Laos and Vietnam officially launched a cross-currency transaction service, connecting their cross-border retail payment systems via QR codes.This initiative, a collaboration between the Bank of Laos and the State Bank of Vietnam, aims to simplify financial transactions for tourists and support cross-border business activities between the two countries.In the initial phase, starting on 9 January, Vietnamese citizens will be able to make payments using QR codes while in Laos. By the end of the year, the second phase will allow Lao citizens to use the same QR code payment system in Vietnam.Additionally, the Lao National Payment Network has announced that QR payments between Laos and Vietnam are now available through participating banks.In Laos, these banks include Banque Pour Le Commerce Exterieur Lao Public (BCEL), Agricultural Promotion Bank (APB), Joint Development Bank (JDB), Lao Viet Bank (LVB), ST Bank (STB), Vietin Bank, Sacombank, Lao Development Bank (LDB), Phongsavanh Bank, Indochina Bank, ACLEDA Bank (ABL), Maruhan Japan Bank Laos (MJBL), Bank of China (BIC), and MB Bank.Meanwhile, Vietnamese financial institutions include Nam A Bank, TB Bank, Vietin Bank, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietcombank, Sacombank, and Ban Viet Bank (BV).The QR code cross-border payment system is part of Laos’ broader strategy to enhance regional money transfers and payments with neighboring countries, including Thailand, Vietnam, Cambodia, and China.In April 2024, Laos and Thailand introduced a similar QR code payment system. In the first phrase, only Lao nationals could make payments by scanning  Thai PromptPay QR codes displayed by merchants in Thailand, using mobile banking apps from participating commercial banks.During the second phase, which began at the end of June 2024, users from Thailand could scan Lao QR codes displayed by merchants in Laos for payment.In August 2023, Laos and Cambodia also launched a cross-border payment system that enables visitors to use their local currencies, the Lao kip and the Khmer riel, via QR codes.Lastly, in December 2024, Laos and China introduced a similar QR payment system as part of their latest e-banking and cross-currency transaction cooperation. This system connects the payment networks of both countries, allowing payments between LAPNet and UPI members through the UnionPay mobile app, which supports over 160 e-wallets in 37 countries.