Vientiane, 2019–06–05, Lao Development Bank (LDB) and Everex signed a Memorandum of Understanding (MoU) to discover and implement blockchain technology for cross border payments and trade finance.

Mr Phoutsala Omdalah, Deputy Managing Director of LDB said in the opening statement: “Blockchain technologies enable banks to transact faster and cheaper. LDB’s mission is to contribute to Lao’s financial sector and by utilizing this new technology we can achieve progress for Laos, the banking sector and for Lao people.”

The ceremony was attended by senior executives of LDB and Lattana Keosihavong, responsible for Laos at Everex. She noted: “As a Laotian I am proud to bring blockchain know-how to Laos. I worked over one year hard to extend Everex’s footprint to Laos.” Several ASEAN countries are developing a digital country 4.0 strategy — like Singapore, Thailand and Malaysia. An essential part of it is the digitization of payments and transactions. Mr Tim Scheffmann, Regional Managing Director of Everex explained that this innovative technology can also have a great impact on trade finance with Laos’ neighboring countries.

“Due to its strategic position, Laos is well suited for digital border trade transactions in combination with migrant workers’ remittances and financial inclusion”, he noted. “Blockchain technology can reduce transaction costs, increase security and transaction speed. This will increase the nation’s GDP and trade volumes.”

Attendees exchanged ideas and gave feedback on potential challenges. As a next step the project governance will be defined and goals for the discovery phase be defined. Blockchain is not only changing the financial sector in countries like Singapore, it will also have a positive impact on Laos’ financial system.