Unlocking ASEAN’s Economic Potential with CBDCs: A Strategic Path Forward

ASEAN stands at a pivotal moment as global interest in central bank digital currencies (CBDCs) accelerates, with most central banks worldwide now conducting experiments or pilots. While several ASEAN members—such as Malaysia, Singapore, Thailand, Laos, and Cambodia—have launched notable CBDC initiatives, the region still faces gaps in regulatory alignment, technological readiness, and financial security frameworks. CBDCs offer major opportunities to lower cross-border transaction costs, enhance transparency, and strengthen regional integration under mechanisms like DEFA, but risks such as capital flight, uneven KYC/AML standards, and limited CRS adoption remain significant. To fully harness CBDCs’ transformative potential, ASEAN will need coordinated standards, strengthened regulatory capacity, and deeper digital literacy to support a secure, interoperable, and region-wide CBDC ecosystem.

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