Two more central banks in Southeast Asia have joined the Regional Payment Connectivity Initiative (RPC) for an inclusive cross-border payment system, according to the Bangko Sentral ng Pilipinas (BSP) in a joint statement with the other authorities.
The statement said Brunei Darussalam Central Bank (BDCB) and Bank of the Lao PDR (BOL) have officially joined the PRC bringing to a total of eight central banks participating in the regional payment system.
It added that BDCB signed the second supplemental pages of the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC) last Feb. 29, 2024 while BOL signed the third supplemental pages of the MOU RPC last April 3, 2024 during the 11th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting in Luang Prabang, Lao PDR.
“The inclusion of BDCB and BOL bring the RPC group to a total of eight ASEAN central banks,” the statement said.
Aside from BSP, PRC was started by the central banks of Indonesia, Malaysia, Singapore, and Thailand during the G20 Leaders’ Summit in Bali on Nov. 14, 2022. Vietnam joined in August of 2023.
RPC intends to promote a “faster, cheaper, more transparent” inclusive cross-border payments in the region. The objective is to strengthen the central banks’ ability “to foster and accelerate the development of payment connectivity in the region through, among others, quick response (QR) code-based payment and fast payment modalities.”
“The regional effort also allows participants to reap the benefits of cross-border economic activities, including providing small and medium-sized enterprises access to the international market, easing of trade, and facilitating worker remittance transactions,” according to the joint statement.
Meanwhile, BDCB Managing Director Hajah Rokiah binti Haji Badar was quoted in the statement as saying that the “scope and areas of cooperation in the MOU RPC will be beneficial, particularly in advancing cross-border payment connectivity (and) this will serve as a means to facilitate further trade, investments, and economic activities within the region and further foster close collaboration with fellow central banks.”
BOL Governor Bounleua Xinxayvoravong, for his part, said signing the MOU RPC “is a significant move toward enhancing future ASEAN regional cooperation.”
“Faster and cheaper financial transactions as well as a secure and seamless payment system infrastructure will support the expansion and sustainability of our economy,” he was quoted as saying.
The BSP and the other central banks are planning for the RPC to eventually include other economies in Asia or outside of ASEAN.