The central banks of Brunei Darussalam and Laos have joined a regional initiative aimed at promoting faster, cheaper and more transparent cross-border payments in Southeast Asia.
The Brunei Darussalam Central Bank (BDCB) and the Bank of the Lao PDR (BOL) signed memoranda of understanding (MOUs) to become part of the Regional Payment Connectivity (RPC) initiative.
BDCB signed its MOU on Feb. 29, 2024, while BOL signed on April 3, 2024, during the 11th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting.
Their inclusion brings the total number of RPC participants to eight ASEAN central banks. Launched in late 2022 by Indonesia, Malaysia, the Philippines, Singapore and Thailand, the initiative was joined by Vietnam in August 2023.
The RPC aims to leverage quick response (QR) code payments and other fast payment methods to improve cross-border transactions.
This will benefit businesses of all sizes, including small and medium-sized enterprises (SMEs), by easing trade and facilitating cross-border remittances.
BDCB Managing Director Hajah Rokiah binti Haji Badar said joining the RPC would enhance collaboration with other central banks and promote cross-border trade and investment.
BOL Governor Bounleua Xinxayvoravong called the signing a “significant move” that would support regional economic growth by enabling faster, cheaper and more secure financial transactions.