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ASEAN Nations Move Towards Regional QR Payment System to Minimize U.S. Dollar Dependence

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In a significant move towards financial integration, Vietnam, the Philippines, and Brunei are set to join a QR payment system within the Association of Southeast Asian Nations (ASEAN). Perry Warjiyo, the Governor of Indonesia’s Central Bank, announced that the payment network, already operational between Indonesia and Malaysia, aims to use local currencies for settling cross-border payments, thereby reducing reliance on the U.S. dollar.

Vietnam is currently in discussions to finalize a national QR system and is expected to join the network later this year. The Philippines is coordinating with industry leaders for regional connectivity, while Brunei is in the early stages of regulating its internal payment sector.

The system has been functioning between Indonesia and Malaysia since May, facilitating cross-border payments through QR codes. Indonesia, Thailand, Malaysia, and Singapore are already working on implementing bilateral and multilateral payments via this system. The ultimate goal is to connect all ASEAN nations, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

“This commitment will help facilitate seamless and secure cross-border payments,” said Warjiyo, adding that “gradually all of the countries will be connected in their payments with local currencies being used.”

The effort to lessen dependency on the U.S. dollar was emphasized during the 42nd ASEAN Summit held in Indonesia. The summit’s final declaration included a commitment to encourage the use of local currencies for financial transactions among ASEAN member states. Indonesian President Joko Widodo also stressed the importance of shifting away from foreign payment systems to avoid potential geopolitical risks, citing sanctions against Russia as an example.

This initiative signals a concerted effort by ASEAN nations to deepen regional financial integration and insulate themselves from the influence of external currencies, notably the U.S. dollar.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a crypto blog writer, he is sharing his knowledge of the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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