The 26th ASEAN+3 Finance Ministers and Central Bank Governors Meeting, held in Incheon, Korea, on May 2, 2023, focused on strengthening cross-border payments and creating a more robust and efficient payment network in the region. The meeting was attended by finance ministers and central bank governors from the 10 ASEAN member states and the plus three countries, China, Japan, and South Korea.
The participants noted that cross-border payments are essential for promoting trade and investment activities in the region, but they can be costly, slow, and inefficient, posing challenges for economic growth. They recognized the potential of new technologies, such as Central Bank Digital Currency (CBDC), in reducing transaction costs, enhancing financial inclusion, and promoting economic growth. The participants emphasized the need for harmonizing regulations and standards across different countries and regions to ensure interoperability and efficiency in cross-border payments.
In the joint statement released after the meeting, the participants affirmed their commitment to promoting sustainable and inclusive economic growth and addressing the challenges posed by the COVID-19 pandemic. They acknowledged the importance of strengthening social protection systems, investing in human capital, and promoting green and digital transformation.
The ASEAN+3 countries also discussed the need for enhanced cooperation and coordination among different stakeholders to promote cross-border payments. They recognized the role of international organizations, such as the Bank for International Settlements and the Financial Stability Board, in facilitating such cooperation and coordination.
The participants recognized that CBDCs could play a vital role in reducing transaction costs, enhancing financial inclusion, and promoting economic growth in the region. The ASEAN+3 countries have been exploring the use of CBDCs for cross-border payments, with China being a frontrunner in developing its own CBDC, the digital yuan.
In conclusion, the 26th ASEAN+3 Finance Ministers and Central Bank Governors Meeting highlighted the importance of strengthening cross-border payments and creating a more efficient and secure payment network in the region. The meeting recognized the potential of CBDCs in achieving these goals and emphasized the need for cooperation and coordination among different stakeholders to promote cross-border payments.
