It's been significant that in setting out on an ambitious modernisation programme to support a nationwide rollout of digital payments will transform country's financial infrastructure, to move the country towards a cashless economy, and to position Myanmar as an economic and financial force including but not limited to supporting SMEs in Myanmar and banking the unbanked population.
Currently there is no common connection between where funds are pooled and where they need to flow between different financial institutions digitally. The digital payment system will help flow the MMK between different financial institutions and in return will help improve the digital MMK usage.
Clear Regulatory Intent through policy:Better understanding of the Market by monitoring the data through this system will in turn strengthen the regulatory role.
Myanmar is still considered as a highly dollarized economy while most of the transactions are still cash-based. This could hinder the effective implementation of monetary policy but our digital payment system will help promote the use of local currency over other currencies.
A new Digital Payment Switch is required to connect to the new Cross Border account payment network that is being built between the ASEAN countries.Myanmar aims to be ready to connect and this is the first step of the journey.
This is a groundbreaking development as it unifies the country's diverse financial landscape onto a common platform, bringing us all together in the digital area.
