The central bank of Laos is working with Japanese financial startup Soramitsu to conduct a study on the feasibility of a central bank digital currency (CBDC).
The country of Laos is the next nation to consider a central bank digital currency, according to a report from Nikkei Asia. The Southeast Asian nation has struck a deal with Japanese startup Soramitsu, which had previously worked on a similar initiative with Cambodia. The latter has already released a CBDC, one that was ranked next to Bahamas’ Sand Dollar in a PwC report on the top CBDCs.
The central bank of Laos and Soramitsu os studying the feasibility of a CBDC in the country. The initial study will launch by the end of the month, as the nation bids to digitize its economy. Nikkei says that the Bank of the Lao People’s Democratic Republic has signed a memorandum of understanding with the Japan International Cooperation Agency on studying the development of a CBDC.
Like other bigger nations working on a CBDC, the expectation is that a national digital currency would help in understanding how the economy is working, offering valuable data. Additionally, it will boost financial inclusion, a key motivator for many countries. Soramitsu will lead the study to see how banks and intermediaries can be involved.