Regional Economic Integration to Leapfrog ChallengesCross-border payment system in BIMSTEC vision amid global monetary volatility

Spadework gets started to establish cross-border digital payment system for sub-regional bloc BIMSTEC to deepen economic integration and promote financial inclusion across South and Southeast Asia.

Sources say the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is taking the step for intra-regional payment mechanism in the wake of volatility in global monetary system and 'trade wars'.

The BIMSTEC Secretary-General, Indra Mani Pandey, confirmed that the bloc, in collaboration with the Asian Development Bank (ADB), recently held a consultation workshop to explore the feasibility of introducing such a digital payment mechanism to enable seamless transactions among member- countries.

"The idea was first floated during the Bangkok Summit last April and is now under review by the member-states," Mr Pandey told reporters.

"A shared digital payment system can significantly reduce reliance on cash, lower transaction costs, and enhance financial transparency-strengthening trust in regional trade and investment," he added.

Officials say the proposed platform would support faster remittance, encourage e-commerce, and simplify government-to-business payments.

By promoting widespread digital transactions, it could also open up new opportunities for small enterprises and micro-, small-and medium-sized enterprises (MSMEs), helping them in reaching broader regional markets.

"Digital payments are not just a convenience-they're a key driver of inclusion and innovation," Mr Pandey said.

"They can help create a more connected, resilient, and innovative Bay of Bengal economy," he added.

The BIMSTEC, which brings together Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar and Thailand, is also planning to launch the BIMSTEC Chamber of Commerce and Industry (BIMSTEC CCI) to boost private-sector engagement.