Laos, located in Asia, is a UN-recognized Least Developed Country (LDC). Currently, Laos is working toward the domestic introduction of a Central Bank Digital Currency (CBDC). Laos' financial infrastructure, including bank account and mobile payment account ownership, is higher than in Cambodia and lower than in Vietnam and the Philippines. The credit card ownership rate in Laos is at the same level as in Cambodia, and lower than in Vietnam and the Philippines. As an LDC, Laos is often seen as having a lower intellectual level than the rest of the world. This is due to a significant shortage of teachers for secondary education programs in Laos. The country also has the lowest university enrollment rate for higher education programs at 14.45 (%) (2019), which is the lowest among the 10 ASEAN countries.

However, Laos is seeing efforts to introduce CBDC through state-of-the-art technology, and innovation creation through leapfrogging is emerging.

The innovation creation in Laos is supported by the presence of young administrative officials in the government and central bank who have studied at institutions of higher learning. In addition to administrative practice, young Laotian administrators conduct research and education on their country's economy and financial system. One area of the economy and financial system is CBDC, and they are trying to create innovations to promote financial inclusion through the introduction of CBDC.

Therefore, this study focuses on the case of CBDC introduction as innovation creation by Leapfrog in Laos, and discusses its background, reality, and challenges.

Authors:
Tetsuro Saisho, Kokushikan University, Japan

About the Presenter(s)
Professor, Faculty of Business, Kokushikan University, Japan.
Research on business innovation using ICT, information security management in information society, Asian industrial clusters, smart city formation and innovation creation.

See this presentation on the full schedule – Saturday Schedule

Bookmark