CBDC Round-Up

Laos Launches CBDC Trial

Laos has trialled a digital currency, the Digital Lao Kip, working with Soramitsu, a Japanese fintech company. Soramitsu worked with the National Bank of Cambodia’s Bakong digital currency in 2020. Bakong now has 8.5 million users who use a QR codes to make payments.

The motivation for Laos is financial inclusion. Some 70% of Laos’ seven million people don’t have a bank account, so cash remains the default payment tool. A further benefit could be a boost to trade and the payment of remittances if Laos can connect its digital currency with neighbouring countries.

Laos does face some challenges. Its digital infrastructure is poor so that only 43% of people have access to the internet. The regional average is 70%. In addition, the cost of the internet is expensive, $53 per month, meaning that many people can’t afford it.