Introduction to Interoperable Payment System
Bangladesh Bank (BB) is set to develop an interoperable payment system with the support of the Gates Foundation. This system will enable seamless transactions of money, goods, and services anytime, anywhere in the country. According to BB Governor Dr Ahsan H Mansur, the interoperable system will allow instant transfers from mobile wallets, bank accounts, non-bank accounts, or institutional accounts directly to any other account.
Benefits of the Interoperable Payment System
The new system will be a game-changer in building a cashless economy. It will enable person-to-person and institution-to-institution transactions to be completed instantly. The governor highlighted the enormous cost of maintaining a cash-based economy, stating that Bangladesh spends nearly Taka 20,000 crore annually just on cash management. In addition, the widespread use of cash fuels corruption, robbery, and illicit transactions.
How the System Will Work
Similar systems have been tested in countries like Pakistan with highly positive results. Those experiences serve as both inspiration and lessons for Bangladesh. The BB chief mentioned that previous attempts to launch such a system in Bangladesh had failed, but this time the initiative, being undertaken with the support of the Gates Foundation through the Mojaloop Foundation, is better positioned for success.
Advantages of a Cashless Economy
With the introduction of a cashless interoperable system, corruption, mugging, and illegal financial dealings will decline significantly. This will strengthen economic growth, enhance revenue collection, and improve public safety. The governor expressed optimism that with the cooperation of the Gates Foundation and Mojaloop Foundation, and by using Bangladesh Bank’s internal capacity, the central bank will be able to launch an effective interoperable payment system within a short period.
Conclusion
The development of an interoperable payment system in Bangladesh is a significant step towards a cashless economy. With the support of the Gates Foundation, the system is expected to be launched soon. This will not only reduce the cost of cash management but also reduce corruption and illegal transactions. The system will enable instant transfers and person-to-person transactions, making it a game-changer in the country’s economy. Overall, the introduction of an interoperable payment system is a positive step towards a more efficient and secure financial system in Bangladesh.
