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Japanese software developer Soramitsu said the Bank of the Lao is launching a Digital Lao Kip (DLak) central bank digital currency (CBDC) proof of concept. Soramitsu was responsible for developing the Bank of Cambodia's Project Bakong blockchain-based payment system that has been incorrectly referred to as a CBDC system. This Bank of the Lao project looks like a CBDC platform (see figure in the Soramitsu post below). https://soramitsu.co.jp/dlak-cbdc

The Bank of the Lao People's Democratic Republic is reportedly launching a CBDC study. The monetary authority has employed the Japanese fintech firm Soramitsu which was involved in a similar project in neighboring Cambodia (Project Bakong). (Laos recently signed a memorandum of understanding with the Japan International Cooperation Agency.)

On October 4, 2021, Soramitsu was selected by the Japan International Cooperation Agency to explore with the Bank of the Lao PDR the potential contribution of CBDC to the inclusive development of the financial system of the Lao People's Democratic Republic.

Brunei Darussalam Central Bank (BDCB) and Bank of the Lao PDR (BOL) have officially joined the ASEAN Regional Payment Connectivity (RPC). The group now has eight member countries. RPC is an initiative that aims to promote, faster, cheaper, more transparent, and more inclusive cross-border payments through, among others, quick response (QR) code-based payment and fast payment modalities.

Soramitsu, the developer behind the Bank of Cambodia's Project Bakong interbank payment system, is involved in a new project to enable payments between Cambodia, other Southeast Asian countries and Japan. Bakong already has cross border payments using QR codes with Malaysia, Thailand and Vietnam, and the additional jurisdictions being worked on include India, China and Laos, with Bakong effectively at the center of a hub. The new Mutsumi project will use Bakong and Japanese yen stablecoins to support Japanese SMEs in selling goods and digital services to Southeast Asian customers.

"Japanese blockchain firm Soramitsu has reportedly landed feasibility studies for central bank digital currency (CBDC) with both Vietnam and the Philippines. Soramitsu is establishing a considerable footprint in Southeast Asia following its successful implementation of Cambodia's Bakong project in 2020. Last year it also started working with Laos' central bank on a CBDC research project."

The National Bank of Cambodia's (NBC's) Bakong online banking and mobile payments app has seen its adoption levels surpass 10 million accounts (about 60% of Cambodia's population. Bakong allows Cambodians to transfer and receive digital funds using their smartphones without traditional bank accounts. The NBC has also established cross-border payment connectivity with Thailand, Laos, and Vietnam, and signed MOUs with the Central Bank of Solomon Islands, the Reserve Bank of Fiji, and the National Bank of Rwanda, to expand the reach of Bakong to these countries. In addition, the NBC has signed a memorandum of cooperation with Japan's Ministry of Economy, Trade and Industry, to facilitate QR code-based payments between Cambodia and Japan.

Palau has contracted with Soramitsu Labs to build a distributed ledger technology (DLT) based government bond issuance platform. Soramitsu, the developer of Cambodia's Bakong DLT-based national payment system, is also working with Laos, the Philippines and Vietnam on central bank digital currency (CBDC) projects, and with the Asian Development Bank on a proof of concept for the cross border settlement of bond transactions. The 100 million yen cost of the Palau project will be covered by Japan's Ministry of Economy, Trade and Industry, and the Japanese foreign and finance ministries will provide advice on strategy and project management.

According to National Bank of Cambodia Governor Chea Serey, cross-border QR code payments made through Cambodia's Bakong digital payment system are set to boost the use of the nation's riel currency. Bakong can already be used for QR code-based payments between Cambodia, Thailand, Laos and Vietnam, and those involving China's UnionPay. These cross-border payments can only be carried out in riel, so Cambodian citizens need to have a riel Bakong account to make payments in Thailand, for example, while Thai tourists can only make QR code transactions in Cambodia if the place where they are shopping accepts riel. The central bank plans to enable cross-border payments using Bakong with India as early as June and is also working with Japan.

Russian Presidential Aide Yury Ushakov announced that Belarus, Bolivia, Indonesia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda and Uzbekistan will become BRICS partners on January 1, 2025. These would be in addition to the existing member countries: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. In addition, over two dozen more countries have shown interest in a systemic dialogue with BRICS: Azerbaijan, Bahrain, Bangladesh, Burkina Faso, Cambodia, Chad, Colombia, the Republic of the Congo, Equatorial Guinea, Honduras, Laos, Kuwait, Morocco, Myanmar, Nicaragua, Pakistan, Palestine, Senegal, South Sudan, Sri Lanka, Syria, Venezuela, and Zimbabwe. https://tass.com/politics/1892171