Evidently, cryptocurrencies have become an unstoppable force in the global economy that several countries even made it the official mode of payment. And now, the Central Bank Digital Currency (CBDC) seems to have become the unanimously accepted solution for governments to partake in the crypto market. Recently, the USA shared its plans for a CBDC in the executive order for cryptocurrencies. Prior to that, China, India, Nigeria, Turkey, and several others also announced similar plans. As per new reports, two South-East Asian countries are joining this ever-so-expanding list.
Yes, Singapore and Cambodia have officialized their plans to explore the creation of CBDCs. The new plans will help realize the potential possibilities of e-commerce within the countries. Also, this will help cement the setbacks of the current payment system and improve it for good. Moreover, it will help fund startups in a more effective way than what is currently used. The countries have announced their plans as a way to keep up with the pace at which the current e-commerce ecosystem is growing.
So far, South East Asia, especially Singapore, has been accommodative of the crypto market. The warm atmosphere has already brought out some of the popular crypto projects in the ecosystem, like Tron, for example. The country also houses several smaller startups from the blockchain industry. The Monetary Authority of Singapore has not passed any curtailing policies against this growing industry. On the contrary, the country is seeking to license and regulate the business to get its economy ready for the shifting expectations. A part of its plans tends to explore bringing out a centralized digital currency.
Reportedly, the growth of fintech firms in Singapore has been ten times faster than other businesses since 2015. Experts believe that the trend is likely to continue for several years in the future. So, in addition to endorsing private startups, the Singapore government is also planning a CBDC ecosystem. Known as Project Dunbar, this project will build a multi-CBDC platform with countries like Australia, Malaysia, and others. This will help these governments create a regulated environment and facilitate bridging with other currencies in the market.
Although it is not as big as Singapore, Cambodia is still one of the fastest-growing economies in the world. The country, moreover, is also ambitious enough to keep up with the recent advancements in web3 and blockchain. According to Assistant Governor Serey Chea from the National Bank of Cambodia, the country has a lot of room for web3’s growth. He said that the country’s 16 million population already has 20 million mobile phone connections making it easier for web3 adoption. In turn, it will help with the country’s payment system and welcome new funds and businesses of the web3.