Cross-Border Payment System in BIMSTEC Vision Amid Global Monetary Volatility

Spadework Has Begun to Establish a Cross-Border Digital Payment System for BIMSTEC, Aiming to Deepen Economic Integration and Promote Financial Inclusion Across South and Southeast Asia.

Sources indicate that the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is pursuing an intra-regional payment mechanism in response to global monetary volatility and ongoing 'trade wars.'

BIMSTEC Secretary-General Indra Mani Pandey confirmed that the bloc, in partnership with the Asian Development Bank (ADB), recently conducted a consultation workshop to assess the feasibility of introducing a digital payment system to facilitate seamless transactions among member countries.

"The concept was first proposed at the Bangkok Summit last November and is now under consideration by the member states," Mr. Pandey told The Financial Express.

"A shared digital payment system can significantly reduce dependence on cash, lower transaction costs, and improve financial transparency—strengthening trust in regional trade and investment," he added. Officials note that the proposed platform would enable faster remittances, encourage e-commerce, and simplify government-to-business payments.

By promoting widespread digital transactions, the system could also create new opportunities for small enterprises and micro, small, and medium-sized enterprises (MSMEs), helping them access broader regional markets.

"Digital payments are not just a convenience—they are a key driver of inclusion and innovation," Mr. Pandey said. "They can help build a more connected, resilient, and innovative Bay of Bengal economy."

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