Vietnam, the Philippines, and Brunei are set to join the QR code payment system along with other member countries of the Association of Southeast Asian Nations (ASEAN). This move aims to promote the use of local currencies and reduce dependence on the US dollar, according to a report by Nikki Asia.
The regional payment connectivity initiative was agreed upon during the ASEAN leaders’ summit in May. Countries like Indonesia, Thailand, Malaysia, and Singapore have already begun implementing bilateral transactions using QR codes, as explained by Perry Warjiyo, Governor of the Central Bank of Indonesia.
Warjiyo believes that this commitment will facilitate safe and seamless cross-border payments. He stated, “Little by little, all the countries will be connected in their payments using local currencies.”
Presently, the central banks of Malaysia and Indonesia have established a cross-border link that allows citizens of both countries to make payments by scanning QR codes on their mobile phones when in the neighboring country. This eliminates the need to use the US dollar as an intermediary, as the Malaysian ringgit and Indonesian rupiah are used for trading.
Warjiyo hopes that more ASEAN member countries will join the initiative and conduct transactions in local currency. He believes this will further promote stability in both the macroeconomy and the financial system, as well as address increased external vulnerability.
The adoption of digital payments is steadily growing in Vietnam, as shown by their participation in the QR code payment system. This move not only showcases the region’s commitment to embracing new payment technologies but also enhances economic cooperation among ASEAN member countries.